Chapter 26

Limitations on Money Damages

Module VII: Remedies & Third Parties

This chapter explains why even justified claims for expectation damages are constrained by foreseeability, certainty, and mitigation. In The Scouring, the effort to restore order provides a useful analogue for the law’s insistence on practical, provable, and avoidable loss.

Doctrinal map

Three filters sit between a justified claim and a recoverable judgment. Foreseeability (R2d § 351; Hadley): consequential damages must have been within the contemplation of both parties at the time of contracting. Certainty (R2d § 352): damages must be provable with reasonable certainty; pure speculation does not count. Mitigation (R2d § 350): losses the non-breaching party could reasonably have avoided are not recoverable. Each operates independently, and a claim must survive all three.

Key Sources

Key Rules

Cases

Exercise: The Scouring →