General Damages under Contract Law

General Damages Under Contract Law: Understanding the Basics

When two parties enter into a contract, they both have certain expectations and obligations they must fulfill. However, what happens when one party fails to fulfill their obligations? This is where the concept of damages comes into play. Damages are a legal remedy that is available when one party breaches a contract. There are two types of damages: general and special. In this article, we will focus on general damages under contract law.

General damages are monetary compensation awarded to an injured party for losses suffered as a result of the breach of the contract. General damages aim to place the injured party in the position they would have been in had the contract been performed as expected. These damages are intended to compensate for losses that are not easily quantifiable or tangible.

Examples of general damages could include:

– Loss of profits or revenue

– Loss of the opportunity to earn profits

– Loss of reputation or damage to reputation

– Pain and suffering

– Emotional distress

It is important to note that general damages are not awarded in every case of contract breach. The injured party must prove that they suffered a loss and that their loss was caused by the breach. Additionally, the damages must be a foreseeable consequence of the breach.

Courts may consider the following factors when determining general damages:

– The nature of the breach

– The extent of the breach

– The duration of the breach

– The mitigating actions taken by the injured party

– The foreseeability of the loss

– Any other relevant factors

It is important to keep in mind that general damages are different from special damages. Special damages are awarded for losses that are direct and quantifiable, such as lost profits or expenses incurred as a result of the breach. General damages, on the other hand, are awarded for losses that are not easily quantifiable or tangible.

In conclusion, general damages are an important legal remedy that is available when one party breaches a contract. If you believe that you have suffered a loss as a result of a breach of contract, it is important to seek legal advice to determine if you have a case for damages. Remember, the burden of proof is on the injured party to prove their losses and that they were caused by the breach.