Contracts - Damages. Bank of America Canada v. Mutual Trust Co.
In Bank of America Canada v. Mutual Trust Co. (SCC, 2023) the Supreme Court of Canada set out the principle that damages for breach of contract are normally calculated on an 'expectation' basis:
(2) Contract Damages
25 Contract damages are determined in one of two ways. Expectation damages, the usual measure of contract damages, focus on the value which the plaintiff would have received if the contract had been performed. Restitution damages, which are infrequently employed, focus on the advantage gained by the defendant as a result of his or her breach of contract.
(a) Expectation Damages
26 Generally, courts employ expectation damages where, if breach is proved, the plaintiff will be entitled to the value of the promised performance (S. M. Waddams, The Law of Damages (3rd ed. 1997), at p. 267).
27 See Haack v. Martin, 1927 CanLII 57 (SCC),  S.C.R. 413, per Rinfret J., at p. 416:
The case is governed by the general rule applicable to all breaches of contract, and laid down as follows by Parke B. in Robinson v. Harman (1848) [1 Ex. 850, at p. 855].
The rule of the common law is, that where a party sustains a loss by reason of a breach of contract, he is, so far as money can do it, to be placed in the same situation, with respect to damages, as if the contract had been performed.