The idea that breach of contract generally only allows recovery for profits and costs incurred due to the breach is called:
A) the compensatory rule
B) the economic loss rule
C) the remedy doctrine
D) contract damages doctrine
E) none of the other choices

Question

Quizplus · Accepted Answer

The economic loss rule is the principle that in cases of breach of contract, the non-breaching party can only recover losses that are categorized as economic losses, such as lost profits and costs incurred due to the breach, rather than non-economic damages like pain and suffering.

The Idea That Breach of Contract Generally Only Allows Recovery