Expectation Loss Law and Legal Definition
Expectation loss is a method of assessing damages and is designed to put the claimant in the same position they would have been in had the contract been performed. It is the loss resulting from the inability to complete a contract or business deal caused by another’s breach of contract. The expectation loss can assessed in two ways - the cost of cure measure or the difference in value measure. The method used for assessment depends on various factors including the reason for the performance; the impact of the claimant’s attempts to mitigate their loss; and whether the court believes that the claimant will carry out the cure if awarded on this basis. There are a number of limitations on the principle of expectation such as remoteness of damage, type of loss etc. Expectation loss is also known as loss of bargain.
