thegrayman wrote:can you recover both exp. and rel. damages for a K?
still murky on this one
Expectation damages usually include any costs incurred in performance or preparation for performance. It attempts to the put the injured party in the position he would have been in had the K been performed. Consider the following hypo: assume I hire you to provide flowers for my wedding at a cost of $10,000 dollars, and I give you a $5000 down payment. Two days before, you notify me that you will not be able to provide the flowers. I was able to find another company to do it, but because it was the last minute, they charged me $15,000. Assuming my cover was reasonable and there were no incidental/consequential damages, I would be able to recover $10,000 (cost of the cover [$15,000] - costs saved by not having to perform [$5,000 less I had to pay you]).
Reliance would be the $5,000 that I spent in preparation (or expectation) of your performance (it could also be interpreted as restitution). But another way to look at expectancy is by recalling its definition: putting the injured party in position he would have been in had the K been performed. Had the K been performed, I would have gotten the flowers for $10,000 -- our contract price. But because you breached, and I had to cover, I spent a total of $20,000 ($15,000 cover + $5,000 down payment) to get the same flowers I would have gotten from you for $10,000. I expended a total of $20,000 when I was only supposed to spend $10,000. To summarize, the expectancy interest includes the value of the bargain to the injured party plus any costs incurred in performance or preparation for performance prior to breach (see avoidability limitation). Reliance interest includes only costs incurred. Reliance is typically sought when expectancy (profit/change in market value/cover) would be difficult to calculate.