Part Two Compensation, s.One General Principles in Assessing Compensatory Damages, 8 Compensating advantages

Subject(s):

Breach of contract — Calculation of damages

The compensatory aims require the courts to assess not only the position the claimant would have been in if the breach of contract or tort had not been committed, but also its actual position as a result of the tort or breach of contract, so that damages can make up the difference. One might expect ‘compensating advantages’ to be deducted or, as it is sometimes alternatively expressed, that losses mitigated would not be compensated. But in fact, compensating advantages are often not deducted. This chapter considers the question of when compensating advantages are ignored. It identifies two general principles of non-deduction: first, indirect compensating advantages are not deducted, and, second, some compensating advantages provided by third parties are not deducted.