In college contract disputes, courts often try to decide what kind of punishment to give if someone breaks a contract. They usually choose between two types of damages: expectation damages and consequential damages.
Expectation damages help make things right for the person who was wronged by putting them in the position they would have been in if the contract had been kept. This means looking at the profits or benefits that one side expected to get from the deal. For example, if a university agrees to pay a guest speaker to come and speak, but the speaker doesn’t show up, the university can claim expectation damages. They would do this based on the ticket sales and other benefits they expected from hosting the speaker.
On the other hand, consequential damages (sometimes called special damages) look at the losses that happen because of the breach, even if they aren’t directly connected to the contract itself. These damages can still have a big effect. For example, if the missing speaker causes former students to not donate money to the university because they were planning to attend the event, those lost donations could be considered consequential damages. Courts usually give these types of damages only if the person who broke the contract could have reasonably expected those losses when they made the contract.
When courts decide between expectation and consequential damages, they consider a few important things:
To sum it all up, the difference between expectation and consequential damages in college contract disputes is about finding a balance between what both sides planned and what actually happens when the contract is broken. The courts pay special attention to foreseeability and what steps were taken to limit the damages during the legal process.
In college contract disputes, courts often try to decide what kind of punishment to give if someone breaks a contract. They usually choose between two types of damages: expectation damages and consequential damages.
Expectation damages help make things right for the person who was wronged by putting them in the position they would have been in if the contract had been kept. This means looking at the profits or benefits that one side expected to get from the deal. For example, if a university agrees to pay a guest speaker to come and speak, but the speaker doesn’t show up, the university can claim expectation damages. They would do this based on the ticket sales and other benefits they expected from hosting the speaker.
On the other hand, consequential damages (sometimes called special damages) look at the losses that happen because of the breach, even if they aren’t directly connected to the contract itself. These damages can still have a big effect. For example, if the missing speaker causes former students to not donate money to the university because they were planning to attend the event, those lost donations could be considered consequential damages. Courts usually give these types of damages only if the person who broke the contract could have reasonably expected those losses when they made the contract.
When courts decide between expectation and consequential damages, they consider a few important things:
To sum it all up, the difference between expectation and consequential damages in college contract disputes is about finding a balance between what both sides planned and what actually happens when the contract is broken. The courts pay special attention to foreseeability and what steps were taken to limit the damages during the legal process.