TechSolutions Inc. entered into a contract with Innovatech Ltd. to deliver 500 units of a specialized component by September 1. Innovatech failed to deliver by the agreed date, causing TechSolutions to lose a key client and seek alternative suppliers at a higher cost. TechSolutions decides to sue Innovatech for the losses incurred. What type of damages is TechSolutions primarily seeking?
TechSolutions is seeking expectation damages, which aim to cover the losses they would have avoided had the contract been performed as agreed. This includes both the additional costs of procuring from another supplier and the lost profits from the key client. Reliance damages would cover expenses incurred in reliance on the contract, nominal damages are for minimal harm, and punitive damages are intended to punish rather than compensate.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What are expectation damages?
Open an interactive chat with Bash
How do expectation damages differ from reliance damages?
Open an interactive chat with Bash
What are punitive damages and when are they awarded?