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LegalCornerTM - Contracts and Agreements F.A.Q.'s

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Q.Will a court award consequential damages for a breach of contract?

A.Assuming your contract is silent on the issue (e.g., does not disclaim consequential damages), the court may award "consequential damages". Consequential damages are generally awarded based upon the foreseeability of the particular harm that occurred at the time the contract was negotiated and executed.

Courts generally try to fashion awards in contract cases to put the parties in the same position they would have been in if the contract had been faithfully performed. However, they sometimes fall back to merely restitutionary awards (placing the parties in the status quo prior to the contract) if there have been extenuating factors (e.g., where the cause of the is not entirely clear, plaintiff could have done more to mitigate damages, or actual damages hard to compute or speculative).

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