What type of damages is awarded to cover losses that would have occurred if the contract had not existed?

The type of damages awarded to cover losses that would have occurred if the contract had not existed is known as expectation damages. This form of damages is designed to put the injured party in the position they would have been in had the contract been fulfilled as anticipated. Expectation damages take into account the potential benefits lost due to the non-performance of the contract, aiming to ensure that the injured party receives compensation for the expected outcome of the agreement.

In contrast, recission damages typically refer to the compensation granted when a contract is canceled or rescinded, focusing on restoring parties to their pre-contractual positions rather than compensating for lost expectations. Compensatory damages are a broader category that includes various types of damages meant to compensate an injured party for actual losses incurred due to another's actions, but they may not specifically address loss of expected benefits. Punitive damages, on the other hand, are intended to punish a wrongdoer for particularly egregious behavior rather than directly compensating for losses arising from a contract.