contemplation of parties rule

contemplation of parties rule
The rule of damages applied in actions for breach of contract that the damages recoverable for the breach are such as may fairly and reasonably be considered as arising naturally-that is, according to the usual course of things from the breach of contract itself, or such as reasonably may be supposed to have been in the contemplation of both parties at the time they made the contract, as the probable result of the breach. 22 Am J2d Damg § 56. In the great majority of cases the courts have refused to apply this rule in tort actions. Anno: 48 ALR 318.

Ballentine's law dictionary. . 1998.

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