What damages can I recover for breach of contract?
The goal is expectation damages — money that puts you in the position you would have been in had the contract been performed. That typically includes direct loss (the value of what was promised), foreseeable consequential loss, lost profits proven with reasonable certainty, and incidental costs, reduced by anything you mitigated.
What are consequential damages?
Consequential (or special) damages are indirect losses that flow from a breach but are not the immediate value of the promised performance — for example, lost business caused by a defective machine. Under Hadley v Baxendale, they are recoverable only if they were reasonably foreseeable at the time of contracting, and many contracts exclude them entirely.
Do I have to mitigate my losses?
Yes. The non-breaching party has a legal duty to take reasonable steps to reduce its loss — such as finding a replacement supplier or reselling goods. You cannot recover losses you could reasonably have avoided. Amounts you actually recover or save through mitigation are deducted from your claim, which this calculator reflects.
Can I recover lost profits?
Often, but you must prove them with reasonable certainty. Speculative or new-venture profits are difficult to recover, while an established business with a track record has a stronger claim. Courts require evidence — historical financials, comparable performance or expert analysis — rather than optimistic projections.
Does a limitation-of-liability clause reduce my damages?
It can significantly. Many contracts cap total liability or exclude consequential damages and lost profits altogether. Where such a clause is enforceable, it overrides the general measure of damages, so your recoverable amount may be far less than your actual loss. Always check the contract's limitation and exclusion clauses first.