An experienced attorney can help you combat these arguments and maximize your damages award. Also, sometimes parties to a contract may limit or preclude either party from recovering consequential damages. Often the breaching party will attempt to avoid paying consequential damages by claiming that they are too speculative or that they are not foreseeable. In that case, the company could likely recover consequential damages for the $50,000 they lost in ticket sales. As a result, the tour company had to turn away 1,000 customers that would have each paid $50 for a bus tour. In the case of the bus example, imagine it took an extra week to secure the new bus. Consequential damagesĬonsequential damages are those that flow as a natural consequence of the breach.Ĭonsequential damages often comprises profits that a company lost as a result of the breach. In that case, the expectation damages would be $10,000-the difference between the contract price and the amount the company had to pay another seller for the same product. The bus company finds another seller with a similar bus, but they won’t take less than $110,000. However, the seller backs out of the contract and refuses to sell the bus.

Expectation damagesĮxpectation damages-also referred to as general damages-are those that directly result from the breach of contract.įor example, imagine a company that provides bus tours enters into a contract to buy a bus for $100,000. They typically fall into two categories: expectation damages and consequential damages. The calculation of compensatory damages is based on the actual losses you have sustained as a result of the breach of contract. An award of compensatory damages is the most common of the legal remedies for breach of contract.

Breach of contract