Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre, and to perform nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. The monetary amount which Barnum would be entitled to receive as compensation from Mario would be the amount of the loss that Mario could reasonably have foreseen at the time that the contract was entered into by the parties.

Question

Quizplus · Accepted Answer

In contract law, damages for breach of contract are typically calculated based on the loss that was foreseeable at the time the contract was made. This is known as the principle of foreseeability, which limits damages to those that the breaching party could have reasonably anticipated as a result of their breach.

Mario, a Professional Entertainer, Entered into a One-Year Contract with Barnum