ABSTRACT

Damages are the traditional remedy for an innocent party who is the victim of a breach of contract by the other party. The purpose of awarding damages is to compensate the innocent party for the loss sustained because of the breach, and not to punish the other party. Before a court can measure the level of damages to be awarded, it must consider and answer two questions:

(a) was there is a causal connection between the innocent party’s loss or damage and the other party’s breach?