ICAEW BL · Chapter 4 · Question 1 of 10
What is the general aim of an award of damages for breach of contract?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To put the claimant in the position it would have been in if the contract had been performed
Explanation
Contract damages protect the expectation interest. They aim to put the innocent party, as far as money can, in the position it would have been in had the contract been performed (Robinson v Harman). Reliance-based damages may sometimes be claimed instead, but they are not the general aim. Damages are compensatory, not punitive, and the loss is not split between the parties.
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