When it comes to business contracts, there is always an expectation that both parties will fulfill their obligations. Unfortunately, breaches of contract can and do occur, leading to disputes and legal action. In such cases, there are different types of remedies that can be sought to make up for the damages incurred. One of these remedies is called expectation damages.

Expectation damages are a type of remedy that seek to put the non-breaching party in the position they would have been in had the contract been fulfilled properly. In other words, it aims to compensate the damaged party for their loss of profit or other benefits that would have been accrued had the contract been followed through.

This type of remedy is often used in situations where the contract itself specifies a certain amount or value of goods or services to be delivered. For example, if a company contracted with another to build a website and the contractor failed to deliver on time or to the agreed-upon specifications, the harmed party can sue for expectation damages. This would typically involve calculating the value of the lost benefits, such as lost sales or reputation, and seeking compensation for this amount.

Another example of expectation damages is in the case of unfinished construction projects. If a construction company fails to complete a building project on time, the owner of the property may suffer losses from lost rent or business opportunities. In this case, the owner can sue for the cost of completing the project or for damages caused by the delay.

The purpose of expectation damages is to make the harmed party whole again, as much as possible. It is not meant to punish the breaching party but to provide a fair remedy for the damages incurred. In some cases, the breaching party may be required to pay damages in an amount higher than the contract value in order to fully compensate for the losses suffered.

In conclusion, expectation damages are a common remedy sought in cases of breach of contract. They seek to put the damaged party in the position they would have been in had the contract been fulfilled properly. If you find yourself in a contract dispute, it is important to seek legal advice to determine which remedies may be available to you.