MBE Rules · Contracts
Expectation damages
The rule
The default measure: put the non-breaching party in the position they would have occupied had the contract been fully performed. Limited by foreseeability (Hadley), reasonable certainty, and the duty to mitigate.
In plain English
Expectation damages aim to give the wronged party what they would have gotten if the contract was completed as promised.
Worked example
A contractor fails to finish a kitchen remodel. The homeowner sues and receives money equal to the cost of hiring someone else to finish the work, putting them in the position as if the remodel was done on time.
Memory hook
EXPECTATION = Future Fulfilled. Damages aim to place you where you'd be if the contract was kept, not broken.
The trap
Students think: damages cover all losses. Wrong, because losses must be foreseeable, certain, and mitigated. The actual test is foreseeability, certainty, and mitigation.
How examiners test it
The MBE loves: party claims huge profits from breach. Trap: students miss foreseeability or certainty limits. Expect questions on Hadley foreseeability or failure to mitigate.
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