#6529 - Contract Damages I - Contract

CONTRACT DAMAGES I: THE MEASURE OF DAMAGES The Compensation Principle: * 'Where a party sustains loss by reason of breach of contract, he [or she] is, so far as money can do it, to be placed in the same situation with respect to damages as if the contract had been performed' o Robinson v Harman * Damages in contract are compensatory not punitive * Plaintiff bears the onus of showing actual loss o Standard of proof on the balance of probabilities * If no loss is establish, the plaintiff will only recover nominal damages Expectation Loss: * The normal measure of damages for breach of contract * Expectation damages compensate the plaintiff for the expected benefit they would have received if the contract had been performed * Normally, this is based on direct loss o Loss of value of the promised performance SS? If the contract has been terminated, the contract price OR the cost of obtaining alternative performance SS? If the contract is not terminated, the difference in value between what has been done and what should have been done * A plaintiff may be entitled to consequential loss o Less direct loss such as loss of profit on a subsequent contract or expenses reasonably incurred as a result of the breach