Expectation Interest

Expectation interest refers to the compensation someone seeks when a contract is breached, aiming to restore what they reasonably expected to gain from the agreement. In simpler terms, if someone doesn’t fulfill their promise, the other party should receive enough compensation to put them in the position they would have been in if the contract had been fulfilled. This concept helps ensure fairness in contractual relationships by recognizing the value of lost opportunities and benefits that were anticipated from the completion of the contract.