Ruxley Electronics v Forsyth [1996] AC 344

Key Point

  • Recovery for cost of reinstatement is subject to a reasonableness test of whether the cost of reinstatement is all out of proportion to the loss suffered.

Facts

Background

  • Building contractors (C) agreed to build a swimming pool for D in his garden.
  • Instead of building it to a depth of 7’6 as stipulated in the contract, it was built to 6’9.
  • The pool was safe for swimming and the resale value of the home was not affected by the breach.

Dispute

  • When D refused to pay, C sued for the contract price.
  • D counterclaimed for the cost to increase the pool depth to 7’6 which amounted to £21,500, around a third of the total price of the pool.
  • Trial judge granted a £2,500 for loss of amenity.
  • The Court of Appeal granted £21,500 for cost of cure.

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