Calculation of the Amount of Damage for Compensation
We have argued that the purpose of compensation awarded by the court is usually in accordance with the principle of restoring the status quo ante.
This is a principle applies not only in contract law but also in tort law.
The basic rule of the damage assessment that was outlined in the ruling is to restore the victim’s condition to its former state through monetary compensation so that his condition is as if the contract had not been violated.
The injured party must prove the factual data that served as a basis for calculating the amount of compensation. It is not enough for the injured party to prove that due to the breach of contract he was harmed, but he must also prove the amount he spent to remove the damage.
And as stated, there is no issue whether it is compensation on a contractual basis or compensation on the basis of damages.
Proof of damage is a necessary but not sufficient condition for determining compensation. The injured party is entitled to compensation under section 10 of the Contracts (Remedies) Act which states that: “The injured party is entitled to compensation for the damage caused to him due to the breach and its consequences and which the breaker saw or had to foresee when concluding the contract, as a probable cause of breach” Both his damage and the rate of compensation he will have to compensate him for his damage.
Just as the injured party must prove the damage caused to him, so he has a duty to prove the factual data from which the compensation can be deduced.
That is, the monetary value of restoring the status quo ante.
The injured party does not go out of his way to prove the damage, but must also provide a factual basis for determining the rate of compensation. And this last matter should not be left to the discretion of the judge.
The prevailing approach is that the injured party must prove not only the fact of the damage but also his rate so that even if the injured party has proved damage his claim will be rejected if he has not proved the damage rate. If the injured party does so and fails to bear this burden, he will not be compensated.
Mathematical and absolute certainty.
It is sufficient for the injured party to prove his damage and the compensation he is entitled to with reasonable certainty, which is required by the circumstances of the case.
This means that in cases wherein light of the nature and nature of the damage it is difficult to prove accurately and with certainty the extent of the damage and the rate of compensation, it is sufficient for the injured party to bring the same data that can be reasonably provided.