What can a promisee claim if they incur losses due to a breach?

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The promisee, in the event of a breach of contract, is entitled to compensation for losses incurred as a result of that breach. This principle is rooted in contract law, where the aim is to put the injured party in the position they would have been in had the contract been performed as agreed.

Compensation can cover direct losses, which are those that arise naturally from the breach, as well as consequential losses, which may occur as a foreseeable result of the breach. This ensures that the promisee is not disadvantaged by the failure of the other party to fulfill their contractual obligations.

The focus on compensation aligns with the fundamental principle of safeguarding the interests of the party who relied on the contract, allowing them to recover losses that they can prove were caused by the breach. Thus, this makes it clear that the promisee has a right to seek damages for their losses rather than being limited to a partial refund or no compensation at all, which would not effectively address the damages caused by the breach.

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