This note emphasizes the importance of remedies in the study of contract law. It describes three different interests that can be protected or restored by the recovery of damages:
1. Restitution interest – the interest in getting the money back that you paid while trying to do your part of a contract
2. Reliance interest – the interest in getting back the value you lost because you were counting on the contract to be performed, e.g. opportunity cost of not looking around for a better deal
3. Expectation interest – the interest in getting the value you would have gotten if the contract had been performed, or in other words, getting damages such that you’d be in the same position that you’d be in if the promise hadn’t been broken.
It is claimed that restitution interest is the easiest to legally justify and expectation interest is the most difficult to justify.