Also known as: unrealized expectations · unrealised expectation · unrealised expectations · expectation interest
Written by attorneys · grounded in primary & secondary sources — see below
A promisee's interest in receiving the benefit of the bargain that the contract was intended to provide but that remains unfulfilled because of a breach.
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Upland Industries secured a multi-year credit facility from United Bank to finance expansion at a fixed rate. United Bank wrongfully terminated the line after one year. Upland Industries obtained replacement financing at higher rates and lost anticipated profits from the scaled-back expansion. Damages measured by the position Upland Industries would have occupied had the facility remained available protect its unrealized expectation.
Uri Underwood contracted with Ultrasonic Dynamics for a warehouse addition using specified high-grade insulation. Ultrasonic Dynamics installed cheaper materials that met code but failed to deliver the promised energy savings. Uri Underwood seeks the difference in value between the promised performance and what was delivered. Monetary damages suffice to protect the unrealized expectation without ordering specific performance.
Protecting an unrealized expectation places the injured party in the position performance would have provided. Reliance interest reimburses expenditures made because the contract was made. Restitution interest returns any benefit conferred on the breaching party.
Supporting sources