Remedies for breach of contract
The primary remedy for breach of contract is damages, aimed at putting the innocent party in the position they would have been in had the contract been performed (the expectation measure); equitable remedies such as specific performance are available only where damages are inadequate.
Last reviewed 14 June 2026
Damages are limited by remoteness (Hadley v Baxendale (1854) — losses must arise naturally or be within the parties' reasonable contemplation), by the duty to mitigate, and by the rule against penalties (a sum payable on breach is enforceable only if it is not out of all proportion to a legitimate interest — Cavendish Square v Makdessi).
Equitable remedies are discretionary: specific performance compels performance (rare — e.g. for unique property) and is refused where damages suffice or for contracts of personal service.
Key cases
- Hadley v Baxendale (1854) 9 Exch 341
- Cavendish Square Holding BV v Makdessi [2015] UKSC 67
- Ruxley Electronics and Construction Ltd v Forsyth [1996] AC 344
Frequently asked questions
What is the aim of damages for breach of contract?
To put the innocent party in the position they would have been in had the contract been performed — the “expectation” measure.
When will a court order specific performance?
Only where damages are an inadequate remedy (for example, for unique property) and at the court's discretion; not for contracts of personal service.