Choosing expectation damages instead of consequential damages has some interesting effects on how we think about contracts:
Clear and Predictable: Expectation damages are simpler to calculate. This makes it easier for people to understand what will happen if a contract is broken. It helps settle arguments more smoothly.
Encouraging Success: When we focus on expectation damages, it motivates people to follow through with their contracts. They know they will get paid for what they promised.
Keeping Liability Low: This method helps limit how much someone can be held responsible if they fail to meet a contract. This can encourage people to take risks and come up with new ideas without worrying about getting hit with huge claims because of things they didn’t expect.
In short, this approach helps balance benefits while creating clear reasons for everyone to keep their promises in contracts.
Choosing expectation damages instead of consequential damages has some interesting effects on how we think about contracts:
Clear and Predictable: Expectation damages are simpler to calculate. This makes it easier for people to understand what will happen if a contract is broken. It helps settle arguments more smoothly.
Encouraging Success: When we focus on expectation damages, it motivates people to follow through with their contracts. They know they will get paid for what they promised.
Keeping Liability Low: This method helps limit how much someone can be held responsible if they fail to meet a contract. This can encourage people to take risks and come up with new ideas without worrying about getting hit with huge claims because of things they didn’t expect.
In short, this approach helps balance benefits while creating clear reasons for everyone to keep their promises in contracts.