Page "Damages" Paragraph 27

As an example, Neal sells Mary a watch for £ 100.

Neal tells Mary it is an antique Rolex.

In fact it is a fake one and worth £ 50.

If it had been a genuine antique Rolex, it would be worth £ 500.

Neal is in breach of contract and could be sued.

In contract, Mary is entitled to an item worth £ 500, but she has only one worth £ 50.

Her damages are £ 450.

Neal also induced Mary to enter into the contract through a misrepresentation ( a tort ).

If Mary sues in tort, she is entitled to damages that put herself back to the same financial position place she would have been in had the misrepresentation not been made.

She would clearly not have entered into the contract knowing the watch was fake, and is entitled to her £ 100 back.

Thus her damages in tort are £ 100.

( However, she would have to return the watch, or else her damages would be £ 50.