Who typically receives 'Special Damages' as a result of a breach?

'Special damages' are typically awarded to the party experiencing specific losses that can be quantified as a direct result of a breach of contract. These damages go beyond the standard compensation for losses and are focused on reimbursing the aggrieved party for particular financial harms that are uniquely identifiable and measurable. For example, if a business fails to deliver merchandise on time, the affected party might incur additional costs due to lost sales or increased expenses that result directly from the breach.

The concept centers on the principle of compensating the innocent party for actual losses incurred due to the breach, rather than any lost profits that are merely speculative or indirect. The rationale is to put the injured party in the position they would have been in had the contract been properly fulfilled. Hence, individuals or businesses suffering specific financial harm as a result of the breach are the ones who receive special damages, capturing those particular losses directly connected to the insurrection of the contract terms.

In contrast, other options do not align with the legal interpretation of special damages. The breaching party does not receive any form of damages; both parties usually do not receive equal compensation as damages are awarded to the party suffering loss; and although some damages may not be recoverable, special damages specifically refer to those