What is the ratio in Ruxley Electronics v Forsyth?

Contract damages should normally be measured by diminution in value, with cost of cure only available where reasonable and proportionate to the benefit gained.

What did the court decide in Ruxley Electronics v Forsyth?

The House of Lords awarded only nominal damages plus £2,500 for loss of amenity, rejecting the expensive cost of cure remedy.

Why is Ruxley Electronics v Forsyth important for contract law?

It established the modern approach to measuring damages for defective performance and recognized loss of amenity damages in consumer contracts.

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