What are the consequences of a contract where the contract does not specify a specific amount of damages?
California, United States of America
The following excerpt is from White v. Western Title Ins. Co., 221 Cal.Rptr. 509, 40 Cal.3d 870, 710 P.2d 309 (Cal. 1985):
"First, the Hadley v. Baxendale [ (1854) 156 Eng.Rep. 145] rule that consequential damages are limited to those in contemplation of the parties when the contract was made could be relaxed in accordance with the current trend; both the applicable statutory language and existing case law support compensatory damages that go beyond that limit and that approach or are comparable to compensatory damages in tort cases.
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