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Expectation Damages

Expectation damages refer to the amount of money a party is entitled to receive when a contract is breached, aiming to put them in the position they would have been in if the contract had been fulfilled. Essentially, it covers the expected benefits or profits that the non-breaching party lost due to the breach. For example, if someone was supposed to provide a service that would lead to a profit, but didn’t deliver, expectation damages would compensate for that lost profit, ensuring the injured party is made whole as if the contract had been honored.

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    Expectation damages are meant to put a party in the position they would have been in had the contract been fulfilled as promised. Essentially, if one party fails to meet their obligations, the other party can claim compensation for what they reasonably expected to gain from the deal. This includes any profits, costs incurred, or losses directly related to the breach. The goal is to cover the difference between what was expected and what was actually received, ensuring the injured party is made whole, without punishing the breaching party beyond the original agreement.