Proof of loss and loss of profit, agreed compensation, mitigation of damages, and avoidance of double recovery.
The basic principle: restoring the injured party to the position they would have been in had the contract been performed
Section 10 of the Remedies Law entitles the injured party to compensation for the damage caused as a result of the breach, provided that the breaching party foresaw or should have foreseen the damage in advance as a probable result of the breach. The compensation covers actual damage and loss of profit: the difference between the actual situation and the situation that would have been created had the contract been performed. An important counter-principle is the duty to mitigate damages; an injured party who sat idly by when they could have reduced their damage will have their compensation reduced.
The abbreviated tracks
Compensation without proof of damage (Section 11): in the breach of a monetary obligation, interest may be claimed in accordance with the law; and in the breach of an obligation to supply or receive an asset or service, when the contract was canceled due to the breach, the difference in value may be claimed according to the terms of the section. Agreed compensation (Section 15) is an amount the parties determined in advance, and it may be claimed without proof of the actual damage. The court may reduce it if it was set without a reasonable relationship to the damage that could have been anticipated at the time the contract was formed. Compensation may not be combined in a way that grants double recovery for the same damage.
Proof of damage: the heart of the case
Compensation claims most often fail not on the question of breach but on the quantification of damage: financial statements, canceled orders, accounting and economic expert opinions, and evidence of lost profit. Building a professional damages case, supported by experts, is the difference between a symbolic judgment and real compensation.
Legal representation
Israel Arama manages contractual compensation claims, from quantifying the damage to actual collection, and defends defendants against inflated claims. Seek an initial consultation without obligation.
The basic principle: restoring the injured party to the position they would have been in had the contract been performed — what is important to know?
Section 10 of the Remedies Law entitles the injured party to compensation for the damage caused as a result of the breach, provided that the breaching party foresaw or should have foreseen the damage in advance as a probable result of the breach. The compensation covers actual damage and loss of profit: the difference between the actual situation and the situation that would have been created had the contract been performed. An important counter-principle is the duty to mitigate damages; an injured party who sat idly by when they could have reduced their damage will have their compensation reduced.
The abbreviated tracks — what is important to know?
Compensation without proof of damage (Section 11): in the breach of a monetary obligation, interest may be claimed in accordance with the law; and in the breach of an obligation to supply or receive an asset or service, when the contract was canceled due to the breach, the difference in value may be claimed according to the terms of the section. Agreed compensation (Section 15) is an amount the parties determined in advance, and it may be claimed without proof of the actual damage. The court may reduce it if it was set without a reasonable relationship to the damage that could have been anticipated at the time the contract was formed. Compensation may not be combined in a way that grants double recovery for the same damage.
Proof of damage: the heart of the case — what is important to know?
Compensation claims most often fail not on the question of breach but on the quantification of damage: financial statements, canceled orders, accounting and economic expert opinions, and evidence of lost profit. Building a professional damages case, supported by experts, is the difference between a symbolic judgment and real compensation.
This information is for initial orientation about the service and contact process. It is not individual legal advice.
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