Damages

A breach of contract may also render the breaching party liable to pay damages to the other party for any loss resulting from the breach. Recoverable damage is e.g. personal and proprietary damage and economic loss. The compensation may for instance include reclamation and investigation costs, price difference between the original and the replacing product, or loss of income. Personal damages appear seldom and are not so often compensated.

Damages may constitute an independent consequence of breach of contract or an additional consequence, e.g. to a reduction in price, repair or cancellation of contract.

The receiver of the performance and the party having the payment obligation may also become liable to pay damages for loss resulting from their breach of agreement according to the same principles.

Contracts usually exclude indirect damages and a maximum amount can be set on the recoverable loss. For further information, see [Limitation of Liability].