Expectation damages

Expectation damages are damages recoverable from a breach of contract by the non-breaching party. An award of expectation damages protects the injured party's interest in realising the value of the expectancy that was created by the promise of the other party. Thus, the impact of the breach on the promisee is to be effectively "undone" with the award of expectation damages.[1]

The purpose of expectation damages is to put the non-breaching party in the position it would have occupied had the contract been fulfilled.[2] Expectation damages can be contrasted to reliance damages and restitution damages, which are remedies that address other types of interests of parties involved in enforceable promises.[3]

The default for expectation damages are monetary damages which are subject to limitations or exceptions (see below)

Expectation damages are measured by the diminution in value, coupled with consequential and incidental damages.[4]

  1. ^ Farnsworth, E. Allan. "CONTRACTS: Cases and Materials" (PDF). Foundation Press. Retrieved 25 April 2021.
  2. ^ "Damages for Breach of Contract" (PDF). NYU. New York University Law. Retrieved 24 April 2021.
  3. ^ Farnsworth Contracts sware.ku.edu March 2014
  4. ^ Orsborn, Justin (1993). "Expectation Damages for Breach of Contract and the Principle of Restitutio In Integrum" (PDF). Aukland University Law Review.