Calculating damages in a business context involves several factors:
Nature of the Loss: The type of loss suffered—whether it is financial, physical, or reputational—affects the amount of damages awarded. Evidence: The injured party must provide clear evidence of the loss, such as invoices, financial statements, and expert testimony. The more concrete the evidence, the higher the likelihood of recovering substantial damages. Mitigation: The injured party has a duty to mitigate their losses. If they fail to take reasonable steps to minimize their damages, the amount awarded may be reduced accordingly. Foreseeability: In contract law, only losses that were foreseeable at the time the contract was made can be claimed. This principle ensures that parties are not held liable for unexpected consequences.