Example
Neal Townsend signs a contract agreeing to buy 10 hours of landscaping services from Wisda's Landscaping for $50 an hour. If Neal Townsend breaks the contract and doesn't use any of Wisda's Landscaping's services, expectation damages paid to Wisda's Landscaping would be $500, which is the economic loss they suffered. If Wisda's Landscaping breaks the contract, and Neal Townsend is forced to hire another service for $60 an hour, expectation (direct) damages paid to Neal Townsend would equal $100 ($10 an hour, the difference in price between the original contract and the new contract).
(Note that, technically, Wisda's damages would be the lost profits only—if Wisda would have had $35 per hour in wages, materials and other expenses, its actual damages are only $15 per hour = $150.)
Read more about this topic: Damages
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“Our intellect is not the most subtle, the most powerful, the most appropriate, instrument for revealing the truth. It is life that, little by little, example by example, permits us to see that what is most important to our heart, or to our mind, is learned not by reasoning but through other agencies. Then it is that the intellect, observing their superiority, abdicates its control to them upon reasoned grounds and agrees to become their collaborator and lackey.”
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