Expectation damages (law)

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Expectation damages are a form of damages available as a recourse to a breached contract. When a contracting party fails to fulfill their contractual duties, which causes losses to the other party, the party in breach can be liable for the losses of the other party. Losses that relate to the consequences of breach are expectation damages, because the purpose of this type of remedy is to put the plaintiff in the position he would have been in had the contract been fulfilled. This head of damage would include loss of future (net) profits.