Breach of Contract & Tort Damages
The objective in providing justice to an aggrieved party for a breached contract is to ensure that the injured party receives what he expected from the contract. The financial award should place the aggrieved party in the position he would have found himself had the contract been fully performed.
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Damage Limitations
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When awarding damages in a breach of contract lawsuit, juries are instructed to limit them to the losses that were foreseeable, which could be contemplated at the time the contract was entered into by the parties involved.
Non-recoverable Damages
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Damages are those that can be established with certainty. Imaginary, remote, speculative or "possible" cannot be recovered by the injured party. Mental or emotional distress caused by the breach of contract are not areas for which damages can be awarded. The injured party is not to be put into a better position than she would have been had the breach not occurred.
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No Punitive Damages
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Compensatory damages are to be awarded so that the injured party regains his original status. Punitive damages are in addition to this rule in that the offending party is punished. These damages are not awarded for breach of contract. However, there have been some cases that have tested the limits of this rule. In these cases, the injured party has been allowed to recover damages according to the rules recognized in tort law.
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References
Resources
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