Damages

Question 1

What are expectation damages?

Answer 1

Court puts party in position they would have been in if contract had been performed.

Question 2

How do you calculate expectation damages?

Answer 2

(1) Loss in value due to breaching party’s non-performance
(2) Consequential or incidental damages
(3) Any loss avoided by the injured party for not performing

Question 3

What are reliance damages?

Answer 3

Reliance damages are awarded if party relied on promise, but cannot prove any lost profits

Question 4

How do you calculate reliance damages?

Answer 4

The court puts party in position they would have been in if the contract was never made.

Question 5

Limitations to damages

Answer 5

(1) Duty to mitigate (But not undue risk, burden, humiliation)
(2) Foreseeability (If breaching party did not reasonably foresee at time of contract formation)
(3) Certainty (Loss must be established with reasonable certainty)