Damages for Breach of Contract: Compensation, Restitution and Vindication

In this article we examine the role which vindication playsin contract damages. Vindication describes the making good ofa right by the award of an adequate remedy. We argue that, whilethe primary purpose of compensation is to provide an indemnityfor loss, an award of compensatory damages will neverthelessgenerally vindicate the right to performance of the contract.We go on to consider a distinct measure of damages, vindicatorydamages. These, we argue, are neither compensatory nor restitutionary,neither loss-based nor gain-based: they are a rights-based remedy.We then identify various situations in which the courts maybe seen to have awarded what are, in substance, vindicatorydamages. We conclude by considering the benefits which may followfrom recognition of the availability of vindicatory damagesas a contract remedy.