Should the Courts Award Expectation Damages for the Breach of Contract in Relation to the Principles of Damages in Contract Law, Why or Why Not?

This paper explores the principles of damages in contract law and analyzes whether courts should award expectation damages for breach of contract. The research is significant as it provides guidelines to parties whose contractual rights have been breached and helps them negotiate contracts efficiently. The paper examines the way in which expectation damages are currently measured by the court, the issues faced by the courts in determining expectation damages, and the principles currently in use in relation to expectation damages. The impact of this approach on business society, where numerous contracts are made and breached daily, is also discussed.

CONTRACT LAW
EXPECTATION DAMAGES

INTRODUCTION
 The broad area of research which has
been selected for the purpose of this
paper is the LAW OF CONTRACT.
The Topic
“SHOULD THE COURTS AWARD
EXPECTATION DAMAGES FOR THE
BREACH OF CONTRACT IN RELATION TO
THE PRINCIPLES OF DAMAGES IN
CONTRACT LAW, WHY OR WHY NOT.”

WHY IS THIS RESEARCH
SIGNIFICANT
 Where there is a loss of profit in relation
to a breach of contract there may be
claims made by the aggrieved party
with respect to expectation damages
 This is an area of law which has not
been widely explored.
 What rules would the judges follow in
case of expectation damages have
always been an issue.

WHY IS IT IMPORTANT?
 Three measures of damages are used by
contract law
 The expectation measure, reliance
measure and restitution measure
 Expectation measure have been ranked
last
 It is therefore important to analyze this
approach of the courts and how it has
an impact on the business society where
numerous contracts are made and
breached daily.

IMPACT ON LAW/SOCIETY
 What impact could it have on
law/society
 It may provide adequate guidelines to
parties who contractual rights have
been breached
 The research would help contractual
parties to negotiate contracts in an
efficient way

OTHER GUIDELINES FOR
MAIN QUESTION
 The way in which expectation damages
are currently measured by the court
 The generally use formula by the courts
 The issues faced by the courts in
determining expectation damages
 The principles which are currently in
used in relation to expectation damages

REFERENCES
 References
 Cases
 Addis v Gramophone Co Ltd [1909] AC 488
 Robinson v Harman (1848) 1 Ex Rep 850
 Journal Articles
 Chillemi, Ottorino, and Claudio Mezzetti. "Optimal procurement
mechanisms: bidding on price and damages for breach." Economic
Theory 55.2 (2014): 335-355.
 Golden, John M. "Reasonable Certainty in Contract and Patent
Damages." (2017).
 Göller, Daniel. "Expectation damages and bilateral cooperative
investments." American Law and Economics Review 16.2 (2014):
473-498.
 Gordley, James. "The Just Price: The Aristotelian Tradition and John
Rawls." European Review of Contract Law 11.3 (2015): 197-219.
 Schweizer, Urs. "Efficient incentives from obligation law and the
compensation principle." International Review of Law and Economics
45 (2016): 54-62.