Limitations to Damages from Breach of Contract

Part of the Contract Law For Dummies Cheat Sheet

The plaintiff in a breach of contract case faces an uphill battle in proving the case. Any damages the court awards are limited by the following considerations:

  • Causation: The plaintiff must prove that the breach caused the loss.

  • Certainty: The plaintiff must prove the amount of damages to a reasonable certainty.

  • Foreseeability (the Hadley rule): The plaintiff can recover only the losses that the defendant, at the time the parties made the contract, would reasonably have known would result from the breach.

  • Mitigation: The plaintiff must make reasonable efforts to minimize the cost of the breach.

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