EXPECTATION DAMAGES RULE UNDER AMERICAN CONTRACT LAW
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Abstract
Under American contract law, the most common used basis for calculation of damages is expectation damages rule when there is a breach of contract. The rule was finalized in Robinson v Harman. The rule is now reflected in Uniform Commercial Code and the restatement (second) of contract. It is still the most common principal of calculating damages used by court. After a century’s development, the rule had developed three restrictions, which are foreseeability restrictions, mitigation liability and certainty restriction. Under common law, the most common remedy for breach of contract is monetary damages rather than specific performance, which is different from civil law. The purpose of monetary damages is to provide the aggrieved party compensation.
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