Washington
How Cook v. Coldwell Banker/Frank Laiben Realty Co. applies in Washington: state-specific rules, key cases, and bar exam notes for Contracts.
Washington courts uphold the principle that an aggrieved party can recover damages for breach of contract if they can demonstrate a real loss occurred. This aligns with the implied covenant of good faith and fair dealing, which necessitates that parties in a contract uphold the spirit of their agreement.
In Washington, damages for breach of contract are measured by the non-breaching party's expectation interest, meaning they may recover the value of what was lost as a result of the breach, assuming it is quantifiable.
The court held that damages must be proven with reasonable certainty, emphasizing the need for tangible evidence of loss.
The court recognized the concept of recovery for prospective profits lost due to breach, provided they are reasonably calculable.
This case reaffirmed that emotional distress damages are generally not recoverable in breach of contract cases unless there are accompanying tort claims.
Washington law aligns closely with the federal standard regarding contract damages, specifically the expectancy damages, as established in the Restatement (Second) of Contracts. Both systems emphasize the necessity of demonstrating foreseeability and reasonableness in calculating losses.
Understanding the application of expectation damages in Washington is crucial for the Contracts section of the Washington bar exam, especially concerning the expectation interest and the necessity of proof.