Damages for breach of contract usually seek to compensate the claimant for the loss caused by the breach. But where a builder carries out work defectively, how should those damages be assessed? Some principles are set out below.

The aim of awarding damages is to put the claimant into the same financial position as if the contract had been properly performed.

The general rule is that damages compensate for financial loss, such that damages are not awarded for mental distress or other non-financial losses. This is subject to some limited exceptions, one of which is considered below.

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