Reliance Damages

This lesson explores the remedy of reliance, which can be available both 1) where there is no contract and 2) where there is a contract and the non-breaching party chooses an alternative to the expectancy measure of damages. The lesson can be run either as an introduction to reliance or as a review after you have completed your study.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Distinguish between reliance on a promise where there is no contract and reliance damages for breach of contract.
2. Apply the elements of Restatement § 90 to fact situations where there is no contract.
3. Determine which losses the non-breaching party can claim in reliance where there is a contract.