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In a breach of contract action, expectation interest damages are designed to restore lost profits?

1) True
2) False

User Oussaka
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1 Answer

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Final answer:

Expectation interest damages in a breach of contract action are not designed to restore lost profits, but rather to make the non-breaching party whole. Lost profits may be awarded if they can be proven and are considered foreseeable and certain.

Step-by-step explanation:

In a breach of contract action, expectation interest damages are not designed to restore lost profits. Expectation interest damages are actually intended to put the non-breaching party in the position they would have been in if the contract had been performed. This generally includes compensating for any financial loss suffered as a result of the breach. However, lost profits may be awarded as expectation interest damages if they can be proven and are considered foreseeable and certain.

User Wannabeartist
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