Action for an Agreed Sum … bite size
Action for an Agreed Sum is not the same as a claim for damages.
Damages is an award of money which puts the injured party in the position they would have been in if the contract has been performed.
Action for an Agreed Sum is a claim for a debt not compensation. This occurs when the contract states an agreed price for performance and payment has not been made.
There are 4 advantages to an action for an agreed sum:
- Do not need to prove quantification
- Do not need to prove causation
- DO no need to prove remoteness
- Do not need to mitigate
Where the claimant has suffered additional loss they can also claim for damages.