What is the difference between damages in tort and damages in contract?

Ontario, Canada


The following excerpt is from Murano v. Bank of Montreal, 1995 CanLII 7410 (ON SC):

Still the law has traditionally distinguished between damages in tort and in contract and set forth general rules for their assessment depending on the cause of action. For instance, in contract, foreseeability is assessed at the time the contract is formed not when it is breached. See Hadley v. Baxendale (1854), 9 Exch. 341, 156 E.R. 145. In tort, foreseeability is judged at the time the tort is committed.

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