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Damages for breach of contract (English law)

Damages for breach of contract generally seek to put the claimant, so far as money can, in the position they would have occupied if the contract had been performed. The claimant must establish the relevant loss and its causal connection to the breach, subject to rules on remoteness, mitigation and proof. Contract terms and the circumstances can affect the remedy; breach does not automatically entitle the claimant to any amount demanded.

Worked example

A supplier breaches a delivery contract and the buyer reasonably obtains a substitute for £500 more than the contracted price. If the additional cost is caused by the breach, sufficiently foreseeable and otherwise recoverable, it may be claimed as damages.

Common mistake

Assuming all losses after a breach are automatically recoverable, or ignoring reasonable steps to mitigate loss.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA LW (ENG) Direct September 2026–June 2027