Reliance Damages

Reliance damages compensate for expenditures reasonably made in reliance on the contract.

Representative cases

• Anderson Excavating & Wrecking Co. v. Sanitary Improvement District No. 177 654 N.W.2d 376 · Nebraska Supreme Court
• State, Department of Administration v. Bachner Co. 167 P.3d 58 · Alaska Supreme Court
• J. D'Addario & Co. v. Embassy Industries, Inc. 20 N.Y.3d 113 · New York Court of Appeals

Related Remedies rules

• Expectation DamagesDamages aim to put the nonbreaching party in the position as if the contract were performed.
• Consequential DamagesDamages are recoverable if foreseeable at the time of contracting.
• Incidental DamagesIncidental damages include reasonable expenses incurred due to breach.
• Mitigation of DamagesNonbreaching parties must take reasonable steps to mitigate damages.
• Restitution DamagesRestitution prevents unjust enrichment by awarding the value of the benefit conferred.
• Liquidated DamagesLiquidated damages are enforceable if reasonable at formation and not punitive.
• Specific PerformanceSpecific performance is available when monetary damages are inadequate and the terms are sufficiently definite.
• Replevin (UCC)Buyers may recover identified goods wrongfully withheld if unable to cover.

Part of Contracts on Core Legal Rules — foundational MBE-tested principles with primary-source citations.