What is the test for damages for breach of contract?

Saskatchewan, Canada


The following excerpt is from Howie v. Donovan-Brisbois, 2008 SKQB 228 (CanLII):

[38] In damages for breach of contract, the principal purpose of damages is to put the injured party, so far as money can do so, in the same position as if his rights had not been violated. The general principles of contractual damage are those set out in Hadley v. Baxendale (1854), 9 Exch. 341; 156 E.R. 145 at 151 [E.R.]: “Now we think the proper rule in such a case as the present is this:-Where two parties have made a contract which one of them has broken, the damages which the other party ought to receive in respect of such breach of contract should be such as may fairly and reasonably be considered either arising naturally, i.e., according to the usual course of things, from such breach of contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties, at the time they made the contract, as the probable result of the breach of it... An owner is entitled to have such defects remedied to such extent to conform to the requirements of the contract, but not to require additional work or work of a higher quality. (Ross v. Barry (1890-91), 19 S.C.R. 360).

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