Expectation interest refers to the entitlement of an individual to receive something they were anticipating, but did not receive due to the fault of another party. For instance, if you purchased a toy online and made the payment, but the company failed to deliver it, your expectation interest would be to receive the toy you paid for. This concept is similar to a contractual agreement where if one party fails to fulfil their obligations, the other party has the right to demand what was promised.
Expectation interest refers to the desire of a party who did not breach the contract to be placed in the same position they would have been in if the contract had been fully executed. For instance, if someone hires a contractor to construct a house and the contractor fails to finish the job, the expectation interest of the individual would be the expense of completing the house with another contractor. This example serves as an illustration of the expectation interest concept, as it demonstrates how the non-breaching party (the person who hired the contractor) has a vested interest in being restored to the position they would have been in had the contract been fulfiled (owning a completed house). The cost of hiring another contractor to complete the house represents the expectation interest of the non-breaching party.
Expectation interest refers to the amount of money or benefit that a party would have received if a contract or agreement had been fully performed as originally intended.
Expectation interest is typically calculated by determining the difference between the value of the promised performance and the value of the actual performance or outcome.
Yes, expectation interest can be awarded in breach of contract cases as a way to compensate the non-breaching party for the loss they suffered due to the other party’s failure to fulfill their contractual obligations.
There may be limitations to claiming expectation interest, such as the requirement to mitigate damages or the need to prove the amount of loss with reasonable certainty.
Expectation interest is generally not awarded in cases of personal injury or torts, as these cases focus more on compensating the injured party for their actual losses rather than the hypothetical gains they would have received.
Yes, parties can include clauses in a contract that waive or limit the right to claim expectation interest in the event of a breach or failure to perform.
The purpose of awarding expectation interest is to put the non-breaching party in the position they would have been in if the contract had been fully performed, thereby compensating them for their losses.
Yes, expectation interest can be awarded in cases of fraud or misrepresentation if the injured party can prove that they suffered a loss as a result of the false information provided.
Yes, in addition to expectation interest, other legal remedies may include reliance interest (compensating the injured party for expenses incurred in reliance on the contract) or restitution (returning any benefits or payments made under the contract).
Expectation interest may not be awarded in cases of impossibility or force majeure, as these situations involve unforeseen circumstances that make it impossible for the contract to be performed as originally intended. In such cases, other remedies like restitution or reliance interest may be considered.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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