Contract Breach Damages Calculator — All
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Four main damage categories apply to contract breaches: (1) Expectation damages (direct damages) — the economic benefit you would have received if the contract had been performed; this is the standard measure. (2) Consequential damages — foreseeable downstream losses caused by the breach (lost profits from a related contract you couldn't fulfill, for example); these must be foreseeable at the time of contract formation and proven with reasonable certainty. (3) Reliance damages — costs you incurred in reliance on the contract (preparation costs, materials purchased); used when expectation damages are too speculative to calculate. (4) Restitution — return of any benefit already conferred on the breaching party, to prevent unjust enrichment.

In the U.S., the 'American Rule' governs: each party pays its own attorney fees unless (1) the contract has a fee-shifting clause explicitly awarding fees to the prevailing party, or (2) a specific statute authorizes fee awards (consumer protection laws, wage and hour statutes, and some real estate statutes in certain states). If your contract has a fee-shifting clause, read it carefully — some are one-sided (only benefit one party) or require a specific definition of 'prevailing party.' California courts have discretion to award fees even on a one-sided clause, treating it as mutual (Civil Code § 1717). Fee awards are not automatic even with a clause — courts have discretion.

The non-breaching party has a legal duty to take reasonable steps to reduce their losses after a breach — this is the mitigation doctrine. Failure to mitigate reduces your damage recovery by the amount you could have avoided through reasonable effort. Example: if a contractor abandons your project, you're expected to hire a replacement contractor promptly rather than letting the project sit idle for months while damages accumulate. 'Reasonable' is the key word — you're not required to take extraordinary measures or suffer undue risk. But obvious, low-cost steps to limit loss are expected.

Statutes of limitations for contract claims vary by state and contract type: written contracts — 3 years (California), 4 years (Texas), 6 years (New York), 10 years (some states); oral contracts — 2–4 years in most states; contracts for sale of goods (UCC Article 2) — 4 years as the UCC default in most states. The clock typically starts when the breach occurs (or when you discover it, in cases of latent breach). Missing the statute of limitations permanently bars your claim regardless of merit. Some jurisdictions have discovery rules that toll the statute if the breach was concealed.

Yes — small claims court handles breach of contract cases up to the state's dollar limit: California ($12,500 for individuals), Texas ($20,000), New York ($10,000 in NYC and some counties), Florida ($8,000), Illinois ($10,000). Procedures are simplified: no formal discovery, no attorneys in some states (California prohibits attorneys from representing parties in small claims), and hearings are typically 15–30 minutes. For claims above the small claims limit, you'd file in civil court — where formal procedural rules apply and attorney fees often make small claims uneconomical even if you win. Consider whether your damages justify the cost and time of civil litigation.