- in contract law, those which are the direct, natural, or probable losses caused by a breach.
- Included would be damages such as the diff betwen K and market prices, the difference between teh value of the goods as delivered and as warranted, and interest on money that has been wrongfully w/held.
- in K law, those which are unique to an individual case, and thus, must be specially pleaded and proved.
- recoverable when special circumstances exist which cause some unusual injury to the P and when the D knew or should have known of the speical circumstances at the timethe D entered into the K.
- special dmages reflecting the foreseeability requirement that arose out of Hadley v. Baxendale years ago in England.
- damages must be forseeable as the probable result of his breach.
include both general and special damages, and are awarded to the non breaching party to place that party in teh same position he would have been in, had the K been performed as agreed.
expectation damages (expectancy measure of compensatory damages)
where possible, the court will award compensatory damages according to the calculation of waht the P expected to rec from perfomrance of the K.
reliance damages (reliance measure of compensatory damages)
- when the expectancy cannot be calculated to a reasonable certainty, then the court may award dmages according to the caluclation of what the P expended in reliance on the K. Essential reliance damges are expenses incurred in teh perfomrance or prep for perf of a K and need not be foreseeable.
- Incidental reliance dmages are foreseeable expenses incurred b/c of the K.
- are an amt of damages stated in a K in advance of any breach.
- sole remedy where valid.
- Vaid if can be shown that it is based on aticipated damages as opposed to being a mere penalty, ie by establishing that damages would have been difficult to ascertain at time K made, and the amt set as liq dmgs is a reasoanble forecast of what damages would be.
given by court to non breahcng party who has suffered damages or who has been unable toprove damages at tril, but who neverthelss has been wronged and is entitled to a judgment for technical breach of K.