A Study of Gain-Based Damages for Breach of Contracts in Common Law and Iranian Law

Breach of contract and damages for it are among the main discussions in the law of contracts. The breach might occur in several ways such as non-performance of contract, delay in performance, deliver of defective goods. Common law system has developed different remedies to face with the breach, of them the most important is damages. In a general division, damages are divided into two groups: loss-based damages and gain-based damages. The most important kind of damages for breach of contract are expectation and reliance damages which fall within the loss-based damages group and seek to compensate the plaintiff. Gain-based damages, however, aimed at benefits the received by the defendant from his breach and not at the loss suffered by the plaintiff as a result of the breach, and is designed to deprive the defendant of those benefits. The article tries to introduce this remedy in Common Law system and to give a brief account of its position in Iranian law. The last discussion shows that this damages is acceptable in a narrow scope and to such an extent that it is inconsistent with the proprietary right of the innocent party.