What is the test for calculating damages for breach of contract?
Ontario, Canada
The following excerpt is from Chambers v. Ryan Warranty Services, 2003 CanLII 5483 (ON SC):
Another general principle in the calculation of damages is that they usually must be a foreseeable result of the breach. Although this principle is by no means absolute nor complete, its formulation states that damages are compensable that fairly and reasonably arise naturally from the breach of the contract or were reasonably within the contemplation of the contracting parties. For that general principle, please see Hadley v. Baxendale (1854), 9 Ex. 341.
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