Expectation Damages
Contracts & Sales · Lesson 06
Expectation Damages
這一課問的是：違約金錢救濟的「主流」是什麼？答案是 expectation damages —— 把非違約方放到「合約若被履行時應在的位置」。
Actor
Act
Object
Standard
Consequence
Visual Scene · the picture in your head
Issue. What does "benefit of the bargain" mean — and how do you calculate it?
這一課問的是：違約金錢救濟的「主流」是什麼？答案是 expectation damages —— 把非違約方放到「合約若被履行時應在的位置」。
Core Terminology · 7 must-know
Tap a card to flip and reveal the meaning.
expectation damages
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Money to put P in the position she would have occupied if the contract had been performed.
期待利益賠償。
loss in value
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Difference between the value of the promised performance and the value actually received.
價值損失。
consequential damages
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Foreseeable losses beyond the contract itself — limited by Hadley v. Baxendale.
間接損害。
incidental damages
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Reasonable costs incurred in dealing with the breach.
附帶損害。
cost avoided
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Costs the non-breaching party did not have to incur because of the breach.
節省成本。
loss avoided
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Losses P did, or could reasonably have, avoided — the duty to mitigate.
可避免之損失。
mitigation
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P's duty to take reasonable steps to limit losses.
減損義務。
Issue · what this lesson is really about
What does "benefit of the bargain" mean — and how do you calculate it?
這一課問的是：違約金錢救濟的「主流」是什麼？答案是 expectation damages —— 把非違約方放到「合約若被履行時應在的位置」。
Trigger words & phrases that should flag this issue:
lossprofit losthad to buy a substituteresold for lesswould have earnedexpenses savedcould have mitigated
Expression Bank · how lawyers actually say it
Six function → sentence patterns. Use these in essay applications.
| Function | English sentence | 中文 |
|---|---|---|
| Frame recovery | P is entitled to expectation damages — the benefit of the bargain. | P 有權獲期待利益賠償。 |
| State formula | Loss in value + other loss − cost avoided − loss avoided. | 損失公式。 |
| Apply Hadley | Consequential damages are recoverable only if foreseeable at contracting. | 間接損害須在訂約時可預見。 |
| Apply mitigation | Losses P could have reasonably avoided are excluded. | 可合理避免之損失被排除。 |
| Acknowledge certainty | Damages must be proved with reasonable certainty. | 損害須以合理確定性證明。 |
| State result | P recovers $X — sum placing P where it would have been. | P 得 $X，將其置於合約履行時應在之位置。 |
Rule Sentence · the workhorse
Expectation damages give the non-breaching party the benefit of the bargain: the value of the performance promised plus other foreseeable loss, minus costs avoided and losses the non-breaching party could reasonably have avoided.
Sentence Anatomy · 5 roles, 5 colors
Every rule sentence breaks into five visual roles.
Actor 行為人the non-breaching party非違約方
Act 行為proving the loss and discharging the duty to mitigate證明損失並履行減損義務
Object 對象the value of the performance promised所承諾履行之價值
Standard 法律標準§347 formula + Hadley + certainty + mitigation§347 公式 + Hadley + 確定性 + 減損
Consequence 後果money damages金錢賠償
Casebook Snapshot · a real American case
Hadley v. Baxendale
Holding. Damages recoverable for breach of contract are limited to losses that arise naturally from the breach, or that were reasonably within the contemplation of both parties at the time of contracting. Special losses require notice of special circumstances when the contract was made.
Why it matters. Foreseeability filters out unusual losses the breaching party never agreed to underwrite. Without notice of special circumstances, the law cuts the chain of damages at what an ordinary party would have anticipated.
Hadley 用可預見性過濾出非典型損失。
Common Mistakes · what trips students
✗ expectation damages = 合約價全部。
✓ Must deduct cost avoided and loss avoided.
須扣除節省成本與可避免損失。
✗ 所有由違約造成的損失都可索賠。
✓ Consequential filtered by Hadley foreseeability.
間接損害受 Hadley 過濾。
✗ 「不可能精確計算就不能賠」。
✓ Test is reasonable certainty, not absolute precision.
要求是「合理確定」，非絕對精確。
✗ 受害方有義務「盡力減少」損失。
✓ Mitigation is reasonable, not at-all-costs.
減損是「合理」，非「不顧一切」。
Mini IRAC · build the Application
Issue. How much may P recover when D breached a contract to deliver widgets, forcing P to cover at a higher price?
Rule. Expectation damages give the non-breaching party the benefit of the bargain — including cover costs that exceed the original contract price.
Application (model). P contracted to buy widgets from D for $40,000; D failed to deliver, and P covered by purchasing identical widgets elsewhere for $46,000 plus $500 in shipping. Because expectation damages place the non-breaching party where it would have been had the contract been performed, the fact that P had to pay $6,000 more for the widgets and $500 in incidental shipping means P's recovery is the cover differential plus reasonable incidental loss.
Pick the right element for each blank:
g1.
g2.
g3.
Conclusion. Therefore, P may recover $6,500 in expectation damages.
MBE Check · multiple choice
A miller's only millshaft breaks. The miller hires a carrier to deliver it for repair, but the carrier delays. The mill is idle during the delay. The miller never mentioned the mill's idleness depended on prompt return. Can the miller recover the lost mill profits?
Mini Essay · write the Application paragraph
Facts. D, a manufacturer, contracted to sell 1,000 sweaters to P, a retailer, for $20 each. D breached and refused to deliver. P, after a reasonable search, covered by purchasing identical sweaters from another supplier for $24 each. P incurred $1,000 in additional shipping and storage costs.
Call. What expectation damages may P recover?
Practice Drill · tap to build the rule
Drop the chips here in correct order:
Tap chips to add → tap chips in the target to remove: