Contractual Damages Terminology

Expectation damages

monetary compensation that puts the injured party in the position they would have been in had the contract been performed.

reliance damages

compensate for costs incurred due to reliance on a contract that was not fulfilled.

wasted expenditure

compensation for expenses incurred in preparation for a contract that was not completed, reflecting losses that result from reliance on the contract.

loss of bargain damages

monetary compensation for the difference between the contract price and the market value of what was received.

loss of chance damages

compensation for the lost opportunity to gain a benefit from a contract due to its breach, typically calculated based on the probability of success.

cost of cure

compensation to restore a party to the position they would have been in had the breach not occurred, typically involving the cost of remedying the defect in performance.

diminuition

in value damages, which refer to compensation for the reduction in value of the subject matter of the contract resulting from a breach.

cost of substitute

damages awarded to cover the expenses incurred in obtaining a substitute performance for a breached contract, aiming to put the injured party in the position they would have been without the breach.

Reduced market value

refers to the diminished value of a contract's subject matter as a result of a breach, compensating for the loss in worth compared to its original value.