I’m literally a higher education law student and no matter how many times it’s explained to me I DO NOT GET IT 😂
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You want to go on vacation to a tropical island. I am a hotel owner on the island. We make a contract that you will pay me $1000 for a week’s stay in my hotel. You buy an expensive airplane ticket, take time off from work, and fly to the island. When you arrive, I say “Sorry, the hotel is full. I cannot give you a room. You don’t need to pay me the $1000.”
You have two reasonable responses to the breach of contract. (1) “Okay, then find me a room at another hotel, and if it costs more than $1000, you have to pay the difference. Give me exactly what I ***expected*** to get: a week’s stay for no more than $1000.” (2) “Okay, I’m going to fly back home, and you’re going to pay for my airplane ticket and my lost wages that were wasted because I ***relied*** on your promise being truthful.”
Expectation damages restore the victim to where they would reasonably be if the contract had been honored. Reliance damages restore the victim to where they would reasonably be if they hadn’t formed the contract at all. You generally would not be able to get both at the same time from a successful lawsuit.
You want to go on vacation to a tropical island. I am a hotel owner on the island. We make a contract that you will pay me $1000 for a week’s stay in my hotel. You buy an expensive airplane ticket, take time off from work, and fly to the island. When you arrive, I say “Sorry, the hotel is full. I cannot give you a room. You don’t need to pay me the $1000.”
You have two reasonable responses to the breach of contract. (1) “Okay, then find me a room at another hotel, and if it costs more than $1000, you have to pay the difference. Give me exactly what I ***expected*** to get: a week’s stay for no more than $1000.” (2) “Okay, I’m going to fly back home, and you’re going to pay for my airplane ticket and my lost wages that were wasted because I ***relied*** on your promise being truthful.”
Expectation damages restore the victim to where they would reasonably be if the contract had been honored. Reliance damages restore the victim to where they would reasonably be if they hadn’t formed the contract at all. You generally would not be able to get both at the same time from a successful lawsuit.
You want to go on vacation to a tropical island. I am a hotel owner on the island. We make a contract that you will pay me $1000 for a week’s stay in my hotel. You buy an expensive airplane ticket, take time off from work, and fly to the island. When you arrive, I say “Sorry, the hotel is full. I cannot give you a room. You don’t need to pay me the $1000.”
You have two reasonable responses to the breach of contract. (1) “Okay, then find me a room at another hotel, and if it costs more than $1000, you have to pay the difference. Give me exactly what I ***expected*** to get: a week’s stay for no more than $1000.” (2) “Okay, I’m going to fly back home, and you’re going to pay for my airplane ticket and my lost wages that were wasted because I ***relied*** on your promise being truthful.”
Expectation damages restore the victim to where they would reasonably be if the contract had been honored. Reliance damages restore the victim to where they would reasonably be if they hadn’t formed the contract at all. You generally would not be able to get both at the same time from a successful lawsuit.
Hey there! So, expectation and reliance interest are two important concepts in contract law. Expectation interest refers to the benefits that a party expected to receive from the contract, while reliance interest refers to the expenses that a party incurred in reliance on the contract.
For example, let’s say you hired a contractor to remodel your kitchen. You expect that the contractor will complete the work in a timely manner and to your satisfaction. If the contractor breaches the contract and doesn’t deliver on these expectations, you may have a claim for damages based on your expectation interest.
On the other hand, let’s say you paid a deposit to the contractor to cover the cost of materials. If the contractor breaches the contract and doesn’t start the work, you may have a claim for damages based on your reliance interest, as you incurred expenses in reliance on the contract.
this example was used with me and it helped.
Hey there! So, expectation and reliance interest are two important concepts in contract law. Expectation interest refers to the benefits that a party expected to receive from the contract, while reliance interest refers to the expenses that a party incurred in reliance on the contract.
For example, let’s say you hired a contractor to remodel your kitchen. You expect that the contractor will complete the work in a timely manner and to your satisfaction. If the contractor breaches the contract and doesn’t deliver on these expectations, you may have a claim for damages based on your expectation interest.
On the other hand, let’s say you paid a deposit to the contractor to cover the cost of materials. If the contractor breaches the contract and doesn’t start the work, you may have a claim for damages based on your reliance interest, as you incurred expenses in reliance on the contract.
this example was used with me and it helped.
Hey there! So, expectation and reliance interest are two important concepts in contract law. Expectation interest refers to the benefits that a party expected to receive from the contract, while reliance interest refers to the expenses that a party incurred in reliance on the contract.
For example, let’s say you hired a contractor to remodel your kitchen. You expect that the contractor will complete the work in a timely manner and to your satisfaction. If the contractor breaches the contract and doesn’t deliver on these expectations, you may have a claim for damages based on your expectation interest.
On the other hand, let’s say you paid a deposit to the contractor to cover the cost of materials. If the contractor breaches the contract and doesn’t start the work, you may have a claim for damages based on your reliance interest, as you incurred expenses in reliance on the contract.
this example was used with me and it helped.
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