Disgorgement remedies for breach of contract

The court awards a full disgorgement for breach of contract also to achieve the purpose of deterrence since it finds its origin in disgorgement for breach of fiduciary duty.<br> <br>After Blake, contractual rights and obligations are fundamentally reconceptualised and a future case where full disgorgement is allowed can be rationalized as a further judicial recognition of the contractual rights that the function of a contract is no longer limited to securing benefits for both parties but it would also be a mechanism for preventing the defendant from profiting from the breach of contract.

Therefore, outside of the Blake situation, the court should take all circumstances into consideration in a case-by-case approach to decide whether the claimant has a legitimate interest in preventing the defendant from profiting from the breach similar to the decision in Esso Petroleum Co Ltd v Niad Ltd [2001] EWHC Ch 458.<br><br>This thesis considers that English law is rather a long way from being willing to embrace a principled approach for awarding a disgorgement remedy like section 39 of the Restatement (Third) of Restitution and Unjust Enrichment (2011) in US law.<br><br><br>