Also known as: other losses
Written by attorneys · grounded in primary & secondary sources — see below
An element of expectation damages in contract law consisting of incidental and consequential losses caused by the breach in addition to the loss in value of the promised performance.
Riverton University contracted with LearnTech to build an online platform for fall courses. LearnTech's delays forced Riverton to cancel classes, refund tuition to students, and pay faculty overtime for emergency redesigns. Riverton recovers the refunds and overtime payments as other loss caused by the breach because those amounts represent additional expenses flowing directly from the deficient performance.
HarborLines contracted with Meridian Commodities for a five-year vessel charter. Meridian repudiated before performance began, so HarborLines never hired the planned crew or purchased fuel hedges. The avoided crew and fuel-hedge expenses are subtracted from HarborLines's recovery as costs or other loss avoided by not having to perform.
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Other loss includes incidental damages such as extra costs incurred in reasonable attempts to avoid loss after breach and consequential damages such as lost downstream contracts or required refunds to customers. These amounts are recoverable when they are caused by the breach, foreseeable at contracting, and proved with reasonable certainty.
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Any cost or other loss the injured party avoids by not having to perform must be subtracted from the damages award. This deduction prevents the injured party from receiving a windfall by ensuring the award reflects only the net loss from the breach.
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Yes, when the harm flows from the breach and satisfies foreseeability and certainty requirements. Lost revenue from canceled appointments and measurable drops in referrals qualify as consequential losses under the expectation interest if they were within the parties' contemplation at contracting.
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No. Other loss encompasses both incidental outlays and consequential harms such as lost profits or downstream contract value, provided they are caused by the breach and meet the usual limitations of foreseeability and certainty.
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…as he may have sustained from the breach, including any profit which he would have realized upon performance, as well as any other losses which may have resulted to him. In the case at bar, the county decided not to build the road of which the bridge was to be a part, and did not build it. The bridge, built in the midst of…