Description
An agreement for a property development omitted to include a provision for the proceeds of sale to be provided to the company's shareholder. The omission was first discovered 3 years later when the development was to be sold. At that time the development was in negative equity and the value of the right was speculative. The court held that the shareholder was only entitled to nominal damages. The shareholder appealed on the basis that his loss should have been assessed at the time of the drafting of the agreement rather than the time of sale. This was rejected on the basis that compensation for breach of duty was intended to compensate for actual losses suffered and none had been when he came to sell the property.
