Make sure you know this about damages for breach of contract

[Rachel]

Damages are intended to compensate the innocent party for the loss that he has suffered as a result of the breach of contract. In order to get compensation for the breach of contract the injured party must establish that:

 actual loss has been caused by the breach
 the type of loss is recognised as giving an entitlement to compensation
 the loss is not too remote and
 the quantification of damages to the required level of proof.

Remoteness of damages

Even if it is proved that the claimant suffered loss because of the breach of contract, he cannot claim all the loss which he might have suffered. In this connection, the general principle is not to compel the defendant to pay damages which are remote.

Important case studies
Hadley v Baxendale (1854)
Victoria Laundry v Newman Industries (1949)

[Acid]

Hi,

What's the difference between Damages for the breach of contract and compensation for the breach of contract?

Thanks

[Rachel]

Damages and compensation means the same. The principle for measuring damages is that the party injured by the breach should receive compensation which is, as far as possible the equivalent of the benefits he would have received had the contract been performed. It is essential to establish a connection between the breach and the damages sought.

Hope this helps!

F4 author