Reliance (Loss) Damages – damages awarded or reimbursement for losses incurred by the plaintiff in reliance on the contract, to restore the plaintiff to the economic condition the plaintiff enjoyed before the contract was formed; violation of trust or confidence that was depended on, acitonable as fraud, deceit, and/or a granting of promissory estoppel

reliance:

1. Dependence.  Trust or confidence, particularly in promises and representations.  As an element of acitonable fraud or deceit: — an inducement to action or injurious change of position on the part of the plaintiff.  37 Am J2d Fraud § 223. [1]

1. Trust; confidence; dependence.  Intent to induce reliance is an essential element of fraudulent misrepresentation.  It is also an essential element of promissory estoppel. [2]

reliance damages:
(1938)

1. Damages awarded for losses incurred by the plaintiff in reliance on the contract.  *  Reliance damages restore the plaintiff to the economic condition the plaintiff enjoyed before the contract was formed. [3]

    Excerpt from P.S. Atiyah, An Introduction to the Law of Contract 311 (3d ed. 1981):

     “Reliance damages are . . ‘real’ losses in a much more tangible way than losses of expectations.  The distinction is nicely illustrated by McRae v. Commonwealth Disposals Commission . . .. . in this case, . . . the defendants sold a shipwrecked tanker which they advertised as lying on a certain reef in the Pacific, and the plaintiffs spent a substantial sum of money equipping a salvage expedition to go in search of the ship.  The ship was wholly non-existent, and the plaintiffs were held entitled to damages.  Here it was clear that the plaintiffs had incurred substantial expenses — real losses — in reliance on the contract, and the Australian High Court awarded these reliance damages to the plaintiffs. [4]

reliance loss damages:
(2006)

1. A reimbursement for losses or expenses that the plaintiff suffers in reliance on the defendant‘s contractual promise that has been breached. [3]

References:

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[1]: Ballantine’s Law Dictionary with Pronunciations
Third Edition by James A. Ballantine (James Arthur 1871-1949).  Edited by William S. Anderson.  © 1969 by THE LAWYER’S CO-OPERATIVE PUBLISHING COMPANY.  Library of Congress Catalog Card No. 68-30931

[2]: Ballantine’s Law Dictionary Legal Assistant Edition by Jack Ballantine (James Arthur 1871-1949).  Doctored by Jack G. Handler, J.D. © 1994 Delmar by Thomson Learning.  ISBN 0-8273-4874-6.

[3]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black, Editor in Chief Bryan A. Garner. ISBN: 978-0-314-61300-4

[4]: P.S. Atiyah, An Introduction to the Law of Contract 311 (3d ed. 1981)

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