CONTRACT LAW — Breach of Contract — Damages — No Damages Without Valid Contract
Ratio Decidendi
Per Rhodes-Vivour, JSC, in Bilante Int'l Ltd v. NDIC (2011) NLC-123-177-1996(SC) at p. 21; Paras E—A:
"Damages follow breach of contract and is payable by the party responsible for the breach. In the absence of a valid contract a claim for damages fades away, as there can be no breach of a contract that does not exist."
Explanation / Scope
This principle establishes that damages require a valid contract; without a valid contract, a claim for damages fails as there can be no breach of a non-existent contract. The principle applies in contract claims. It ensures that damages are only awarded where a contract exists. The principle reflects the precondition for damages. It prevents awards without a contract. The court must require a valid contract. The principle provides guidance on damages for breach of contract.