ABSTRACT
This chapter firstly explores how losses are, conceptually, calculated before, and secondly considers what limitations and deductions are applied by the courts to achieve net values aimed at fairly compensating the innocent party for its actual loss(es). In contract the normal measure of loss, where one party has breached a term of the contract, is the market value which would have attached to benefit which the other party would have received but for the breach. Simply put, it is the profit which they would have expected to make had the breach not occurred, i.e. the innocent party’s loss of bargain. Of course, in shipping and, more generally, commerce, parties will generally insure their risks which can mean that when a breach of contract arises, causing a loss to the innocent party, that party may have a claim for breach of contract against the party in breach and also, separately, a claim under the relevant insurance policy to compensate for losses.
