Reliance Damages
/rɪˈlaɪəns ˈdæmɪdʒɪz/
Definitions
- (n.) Monetary compensation awarded to a party to cover costs incurred based on reliance on a contract that was breached or failed.
The plaintiff sought reliance damages to recover expenses spent preparing for the contract performance.
Forms
- reliance damages
- reliance damage
Related terms
See also
Commentary
Reliance damages emphasize reimbursement for actual losses due to reliance rather than anticipated profits; they are crucial when expectation damages are uncertain or unavailable.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.