chapter  1
Pages 6

The rationale for the enforceability of contracts is essentially the promotion of trade and commerce, which would be seriously hampered if contracting parties could not be held to their bargains. Accordingly, a party which enters into a valid contract can be assured that it will be able to recover compensation from the other party in the event of the latter’s repudiation of the agreement or failure to perform its obligations, and the ‘measure’ (i.e. the amount) of damages recoverable in contract law is intended to compensate the innocent party not only for any material or fi nancial damage sustained on account of the other party’s breach, but also for any loss of profi ts or other benefi ts which it would have received if the contract had been performed by that other party.