What does 'Ordinary Damages' typically refer to in breach of contract cases?

Ordinary damages in the context of breach of contract cases primarily refer to general losses that arise directly from the breach. These damages are intended to put the aggrieved party in the position they would have been in had the contract been fulfilled as agreed. Ordinary damages cover actual losses resulting from the breach, such as lost profits, expenses incurred, and other financial impacts that can be directly linked to the failure to meet contractual obligations.

This concept is founded on the principle that a contracting party should not suffer a loss due to another party’s failure to perform. Therefore, when calculating ordinary damages, the focus is on the predictable financial results of the breach, rather than punitive measures or fixed amounts predetermined in the contract. Such damages do not serve to punish the breaching party (which would be the role of punitive damages) or to compensate for trivial amounts, but instead aim to reflect the true economic impact of the breach suffered by the non-breaching party.