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Part VIII Remedies For Default, 28 Damages

From: Contract Law in Practice

Neil Andrews

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2022. All Rights Reserved.date: 10 August 2022

Subject(s):
Breach of contract — Remedies for breach of contract — Calculation of damages — Contract clauses and damages — Types of damages — Types of loss and damages

The rules governing compensatory damages for breach of contract are complicated and at times difficult to apply precisely. This chapter considers those doctrines in detail: including the different `measures’ of compensation, and the defences of causation, remoteness, mitigation, etc. The paradigm measure of compensatory damages for breach of contract is the so-called ‘expectation’ or ‘loss of bargain’ species. Here the aim is to place the innocent party in the position in which he would have been if the contract had been properly performed. That aim cane be achieved notably by recovering the profits he had expected to gain under the contract. But where loss of profit cannot be easily proved, a ‘fall-back’ compensatory measure is reliance loss damages. These restore the innocent party monetarily to the position he enjoyed before the contract was breached, thus enabling him to recover his wasted expenditure.

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