When it comes to contracts, the expectation is that all parties involved will fully perform their obligations as outlined in the agreement. However, sometimes there may be a breach of contract, where one party fails to fulfill their obligations. In such cases, the question of damages arises, which refers to the compensation payable to the non-breaching party for the loss suffered due to the breach.
In situations where there was substantial performance of the contract, the measure of damages is calculated differently. Substantial performance means that the party in breach has fulfilled most of their obligations under the contract but may have fallen short in one or a few areas. In such cases, the non-breaching party cannot claim the full amount that they would have been entitled to if the contract was fully performed but can only claim damages for the incomplete or deficient aspect.
The measure of damages for a breach of contract where there was substantial performance is called “damages for breach of partial performance.” These damages are calculated based on the difference between the actual value of the partially performed obligation and the value that would have been achieved if the obligation was fully performed. This calculation takes into consideration any expenses incurred in correcting or completing the partially performed obligation and any profits lost due to the breach.
For instance, if a contractor was hired to build a house, but they failed to complete the landscaping, the measure of damages would be based on the value of the incomplete landscaping. This could include the cost of hiring a new contractor to finish the landscaping, as well as any potential loss of profit or value that the incomplete landscaping caused to the property.
It is important to note that the measure of damages for breach of partial performance can be quite complicated and will depend on the specific facts of each case. In some cases, it may be difficult to determine the actual value of the partially performed obligation or the profits lost due to the breach. Therefore, it is advisable to seek the advice of a legal expert to guide you through the process of calculating damages.
In conclusion, the measure of damages for a breach of contract where there was substantial performance is calculated based on the difference between the actual value of the partially performed obligation and the value that would have been achieved if the obligation was fully performed. If you believe that you have suffered a loss due to partial performance, it is important to consult with a legal expert to determine the best way to proceed and ensure that you receive fair compensation.