What kind of damages is awarded to reflect what was reasonably expected from a contract?

Expectation damages are awarded to compensate a party for what they expected to gain from a contract, essentially reflecting the value of the promised performance. This type of damage is aimed at putting the aggrieved party in the position they would have been in had the contract been fully performed as agreed.

In a contractual context, expectation damages account for the potential profits and benefits that the non-breaching party anticipated receiving from the contract. This makes them a critical concept in contract law, as they underscore the principle of fulfilling mutually agreed-upon terms and obligations. By focusing on what the non-breaching party reasonably expected, expectation damages provide a measure of fairness and accountability within contractual relationships.

Restitution damages, on the other hand, seek to restore the injured party to the position they were in before the contract, rather than focusing on the benefits they expected. Punitive damages are intended to punish the breaching party rather than compensate the non-breaching party for their expected losses. Consequential damages may cover indirect or secondary losses, which are not what the parties initially expected from the contract itself. Therefore, expectation damages specifically align with the goal of reflecting what was reasonably expected from the contract.