The principle of assessment of damages for breach of contract is given in
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The Compensatory Principle. The fundamental 'compensatory principle' underpins the assessment of damages in contract and tort law in England and Wales. The principle provides that the purpose of an award of damages is to compensate the injured party for loss, rather than to punish the wrongdoer.
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The principles for assesment of damages are given in Hadley v. Baxandale
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