Prospective

Part 2 S Remedies for Breach of Contract

Rescission for breach of contract S

20 Compensation for reduction in value of a returned benefit S

(1) This section applies where the recipient is required, by section 18(6), to transfer a benefit.

(2) The recipient must pay compensation for any reduction in the value of the benefit as a result of a change in the condition of the benefit between the time of receipt and the time of transfer to the other party.

(3) But the recipient’s liability to pay compensation under subsection (2) is reduced to the extent that the change in condition is a result of—

(a) the non-performance of an obligation owed by the other party to the recipient (being an obligation under the contract), or

(b) conduct of the recipient in the reasonable, but mistaken, belief that the other party’s performance of an obligation so owed conformed with the contract.

Commencement Information

I1 S. 20 not in force at Royal Assent, see s. 29(2)