|
Expectation damages are damages recoverable from a breach of contract by the non-breaching party . An award of expectation damages protects the injured party's interest in realizing the value of the expectancy that was created by the promise of the other party. The purpose of expectation damages is to put the non-breaching party in the position it would have occupied had the contract been fulfilled. Expectation damages can be contrasted to reliance damages and restitution damages, which are remedies that address other types of interests of parties involved in enforceable promises. The default for expectation damages are monetary damages which are subject to limitations or exceptions (see below) Expectation damages are measured by the diminution in value, coupled with consequential and incidental damages. == Measuring Expectation Damages == In expectation damages, the measure of damages is the difference between what was given and what was promised, along with consequential and incidental expenses minus any payments received from the breaching party and any costs saved as a result of the breach. The proper amount is that which gives the non-breaching party the "benefit of the bargain." However, it is important to note that expectation damages are not punitive; its theoretical purpose is to place the injured, non-breaching party in the same position that they would have occupied had there been full performance of the contract. In other words, it is the amount that makes the injured party indifferent to the breach. Examples: *General contractor accepts an offer from a subcontractor and enters into a contract. The general contractor breaches / repudiates their contract part way through the subcontractor's performance. Generally, the subcontractor is entitled to seek an amount equal to the contract price or unrealized value of the promised performance plus costs incurred in preparing or performing under the contract (and costs incidental to the breach e.g., storage costs, restocking fees for returns; penalties or costs for canceling contracts, supply orders etc.) minus any progress payments made by the general contractor and minus costs saved by the breach; can include anticipated profit. *Neal signs a contract agreeing to buy 10 hours of landscaping services from John's Landscaping for $50 an hour. If Neal breaks the contract and doesn't use any of John's Landscaping's services, expectation damages paid to John's Landscaping would be $500 minus any costs John's Landscaping may have saved, which is the economic loss they suffered. If John's Landscaping breaks the contract, and Neal is forced to hire another service for $60 an hour, expectation (direct) damages paid to Neal would equal $100 ($10 an hour, the difference in price between the original contract and the new contract). 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「expectation damages」の詳細全文を読む スポンサード リンク
|