Contractual Damages: Principles and Applications

Abstract

Every contract has a chance of failure and for this reason, the award of damages for contractual breach is an important concern for businesses. The principle for award of damages is simple and centuries old. The principle is to, by money compensation, put the parties in a situation they would be if the contract were performed. In the sale of goods, as there is a market for ready reference for money value of goods, the principle finds ready application. The application of the principle for services is not straight forward. As services have become diversified, new challenges have come before the courts in awarding damages. The courts have been innovating in applying the principle to the rapidly changing world.