354: Listen and Learn -- Expectation and Consequential Damages (Contracts)
The Law School Toolbox Podcast: Tools for Law Students from 1L to the Bar Exam, and Beyond
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Defendant's Rule for Expectancy Damages
The rule says that damages must be reasonably foreseeable at the time of contract formation. To illustrate this rule, let's say that i breach an agreement to sell you 100 widgets at ten dollars per widget. Because of my breach, you are 100 dollars worse off than you would have been if i had performed according to our agreement. So your expectancy damages are 100 dollars. Now let's move on to the rule for consequential damages. Consequential damages arise indirectly from the breach and are awarded because of the injured party's special circumstances, for example, lost profits.
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