Receiving breach of contract damages is one possible outcome of a successful claim but there are multiple ways of achieving this. For this reason it is essential to seek expert advice from breach of contract solicitors , to ensure that you secure the best advice before seeking damages for your claim.

Breach of contract damages can be categorised in two main ways: expectation damages, or reliance damages.

Expectation damages

Situations involving contract disputes will inevitably result in one party playing catch-up as they attempt to recover from any financial set back they suffered as the result of a contract breach. While some breach of contract remedies will aim to re-instate the claimant to the position they were in prior to the contract’s existence, the aim of expectation damages is to place the wronged party in a the position they would be in had the contract been fulfilled on all accounts.

Various elements contribute towards the quantification of expectation damages.

The first of these is the cost of rectification, i.e. the fees associated with having the court alter the contract so as to express the true intentions of all parties.

Secondly, the difference in financial revenue that would have been brought to the claimant had the contract not been breached compared to their present financial situation.

Any costs which the wronged party forfeited as a result of the breach must also be considered along with any related loss of amenity.

Annecto Legal has a network of specialist breach of contract solicitors to ensure you’re awarded the damages you deserve.

Reliance damages

Reliance damages, whilst also compensating the claimant for the breach, aim to put the claimant in the same position they were in prior to the contracts existence as opposed to simulating contract fulfilment.

As the name suggests, reliance damages are based on compensation for the claimant who incurred financial losses as a result of reliance on the contract. Financial losses of this nature often stem from expenses caused by any number of business processes affected by a contract breach.

Expectation and reliance damages cannot be claimed for simultaneously, this is to prevent a claimant being awarded significantly more than they should. The claims both represent breach of contract remedies with financial emphasis.

Breach of contract damages can also be awarded for matters related to a contract but which are of a non-financial nature, such as stress caused to the claimant due to the non-fulfilment of the contract for example. It is crucial when involved in breach of contract litigation, you seek expert advice to ensure that you are claiming for the appropriate level of compensation.breach of contract damages

When considering a breach of contract claim, make sure you assess the strength of your case correctly. It is possible that, whilst courts may expect you to mitigate your losses, you actually have a strong case with a high chance of winning significant breach of contract damages.

Annecto Legal has access to a network of legal specialists, and considerable experience of funding breach of contract claims. For more information visit our breach of contract solicitors page, or contact one of our litigation advisors.