What are damages in breach of contract claim?

Asked by: Eveline Hand Sr.  |  Last update: December 22, 2025
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An award of compensatory damages is the most common of the legal remedies for breach of contract. The calculation of compensatory damages is based on the actual losses you have sustained as a result of the breach of contract. They typically fall into two categories: expectation damages and consequential damages.

What are the damages for breach of contract?

  • Compensatory Damages. Compensatory damages compensate the non-breaching party for the actual financial losses suffered as a direct result of the breach of contract. ...
  • Consequential Damages. ...
  • Incidental Damages. ...
  • Punitive Damages. ...
  • Nominal Damages.

What are special damages for breach of contract?

In contract law , special damages (also called consequential damages) refer to irregular damages such as physical injuries during a breach of contract , but general damages would refer to the damages expected from the contract being breached.

What 3 elements must a breach of contract claim?

Once the plaintiff proves that a valid contract existed, they must show that they upheld their part. After that, the plaintiff must show that the defendant did not fulfill their obligations. And finally there must be evidence of actual damages that the plaintiff suffered as a result.

How are damages calculated in a breach of contract?

The amount payable for compensatory breach of contract damages is assessed by looking at the position you would have been in but for the breach. The courts will look at the loss you have sustained because of the breach and aim to provide a level of compensation that is fair but not punitive.

What Are Monetary Damages in a Breach of Contract Lawsuit?

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Can you claim damages for breach of contract?

In order to sue successfully for damages arising out of a breach of contract, you must demonstrate that there was a contract in existence, that the other side failed to perform their part of the bargain satisfactorily and that you suffered a loss as a result.

How much compensation can you get for breach of contract?

In a breach of contract case, damages typically cannot exceed four times the actual losses. However, the exact amount depends on the specifics of your case. Consult with a lawyer to determine the potential damages you may recover.

Is it worth suing for breach of contract?

The Value of the Contract: Consider whether the breach resulted in substantial financial or other losses. If the damages are minimal, the costs of litigation may outweigh the potential recovery. For example, suing over a minor inconvenience or slight delay may not be worth the effort.

What are the two types of damages generally available for breach of contract?

These are general damages and special damages. General damages, (sometimes called Direct Damages) are direct result of the breach i.e. general damages flow directly and necessarily from the breach of contract.

How do you win a breach of contract case?

You may be sure you have an air-tight case, and you may be right, but a winning breach of contract lawsuit has four factors.
  1. Factor #1: A Well Written Contract. ...
  2. Factor #2: A Clear and Obvious Breach. ...
  3. Factor #3: Substantial and Identifiable Damages. ...
  4. Factor #4: A Defendant with Deep Pockets.

What are general damages for breach of contract?

General damages compensate you for direct losses you suffered due to a breach. For example, if your supplier failed to deliver goods on time, you might have needed to purchase replacement goods. These goods may have been more expensive because you had to buy them at the last minute.

Can you get punitive damages for breach of contract?

App. Div. 1998) ("While punitive damages are usually not awarded in litigation involving breach of a commercial contract, they may be awarded where there is a breach of trust between the parties beyond the contractual breach.

How to calculate damages for negligence?

There's no set formula to calculate damages. However, a general rule to discern the amount awarded is to combine your expenses and determine a value for your pain and suffering. A personal injury lawyer can help you determine the amount in both general and special damages that you deserve.

What are special damages in breach of contract?

These are actual losses driven by the breach, but not directly and immediately. To obtain special damages, the non-breaching party must demonstrate that the breaching party knew of the particular circumstances or conditions when the contract was signed.

How to sue for breach of contract?

You can file a lawsuit to recover your damages. You begin by filing a complaint in the appropriate civil court. A complaint is a technical legal document that describes the problem and explains the case to the judge and the other party. The complaint must then be served, i.e., delivered to the defendant.

What is the damage clause for a breach of contract?

It is a provision in a contract that outlines the consequences or remedies available to the parties in the event of a breach or violation of the contract terms. It specifies the amount of compensation that must be paid by the breaching party to the non-breaching party to make them whole.

How to calculate damages for breach of contract?

general expectation damages = the value of performance without the breach (what was promised) minus the value of performance with the breach (what was received)

What is the award of damages for breach of contract?

Legal Provisions. Section 73 of the Indian Contract Act, 1872 lays down the provision relating to damages. It provides that the party who breaches a contract is liable to compensate the injured party for any loss or damage caused due to the breach of contract.

What is considered damages in a lawsuit?

In civil cases , damages are the remedy that a party requests the court award in order to try to make the injured party whole. Typically damage awards are in the form of monetary compensation to the harmed party. Damages are imposed if the court finds that a party breached a duty under contract or violated some right.

How much money can you get for a breach of contract?

Breach of contract damages generally cannot exceed four times the actual losses, but everything depends on the facts of your specific case. Your lawyer can identify whether you can recover these damages in your case.

How long after breach of contract can you sue?

For a written contract, you generally must file your lawsuit within 4 years of when the agreement is broken. For a verbal contract, you must file it within 2 years of when the agreement is broken.

What compensation can you get for breach of contract?

An award of compensatory damages is the most common of the legal remedies for breach of contract. The calculation of compensatory damages is based on the actual losses you have sustained as a result of the breach of contract. They typically fall into two categories: expectation damages and consequential damages.

Can I go to jail for breach of contract?

Contract law disputes that end up in court are litigated as civil cases. That is, they involve a disagreement between private parties as opposed to society as a whole. Therefore, someone who breaches a contract will not go to jail for that breach.

What is reasonably foreseeable damages?

What is Reasonable Foreseeability in Damages Law? Reasonable foreseeability is a set of common law principles which operate to limit compensation recoverable by an innocent party for breach of contract and for tortious loss.

What damages could a seller possibly claim if the buyer is in breach of contract?

When someone breaks a real estate contract, the seller can usually get damages. Damages are the difference between the agreed purchase price and the market value of the property at the time of the breach, minus any amount already paid by the buyer.