In breach of contract situations, what does it mean to follow the principle of "no betterment"?

In breach of contract situations, following the principle of "no betterment" means to return the injured party to their original position before the breach occurred, rather than allowing them to profit or enhance their financial position as a result of the breach. This principle serves to ensure fairness in contractual relationships, making sure the injured party is compensated for their loss but not allowed to gain more than what they would have received had the contract been fulfilled as originally intended.

For instance, if a contractor fails to deliver on a project and causes financial harm to the client, the damages awarded would be intended to cover the losses incurred without granting the client any additional benefit that they would not have had if the contract had been executed properly. The goal is to restore the injured party to where they were before the breach, maintaining the original financial equilibrium. Thus, the focus is on remedying the loss rather than creating a situation where the injured party is unduly enriched.