When it comes to contract disputes, one type of claim that is often discussed is known as a “pure economic loss contract claim.” This type of claim refers to situations where one party suffers only financial harm as a result of a breach of contract, rather than physical or property damage.
There are a few key things to understand about pure economic loss contract claims. First, it`s important to note that they are not always recognized in all jurisdictions. Some courts may limit or even bar such claims, viewing them as too speculative or difficult to prove.
However, in jurisdictions where pure economic loss contract claims are recognized, they can be valuable for businesses or individuals seeking compensation for financial losses that may have been caused by another party`s breach of contract. Here are some key factors to consider when evaluating whether such a claim may be viable:
– The existence of a duty: To succeed with a pure economic loss contract claim, the plaintiff must be able to establish that the other party had a duty to perform under the contract in question. This may involve demonstrating that a specific promise was made, or that certain actions were required under the terms of the agreement.
– The scope of damages: Pure economic loss contract claims can include a wide range of financial damages, such as lost profits, lost revenue, or expenses incurred as a result of the breach. To make a successful claim, the plaintiff must be able to demonstrate the extent and nature of the damages suffered.
– Evidence of causation: As with any legal claim, it is important to establish a clear link between the breach of contract and the harm suffered. In a pure economic loss case, this may involve showing that the defendant`s failure to perform a required action directly caused the plaintiff`s financial losses.
– Mitigation efforts: Finally, it is important for the plaintiff to demonstrate that they took reasonable steps to mitigate their losses following the breach. This may involve showing that they attempted to find alternative suppliers, customers, or other business partners to replace the non-performing party.
Overall, pure economic loss contract claims can be an important tool for businesses or individuals seeking to recover financial losses caused by a breach of contract. However, it is important to work with an experienced lawyer to evaluate the viability of such a claim in your specific jurisdiction and circumstances.