Can you claim loss of profits in a contract dispute?

Summary

A claim for loss of profits is most common with construction disputes but can also be claimed in other types of contracts. Under English law, successfully claiming lost profits after breach of contract is difficult. The amount of damages (quantum) of a claim can easily be overlooked when deciding to sue for breach of contract. A full and proper assessment is strongly advisable before starting a legal claim. If you need specialist, experienced lawyers for a contract dispute, we have an excellent team. Please do get in contact. To successfully recover lost profits as a result of breach of contract there are 3 key elements :- * you must be able to prove that the breach of contract directly caused the lost profits; and * that loss of profits was a foreseeable consequence of the breach of contract; and * being able to demonstrate that you have attempted to mitigate losses as a result of the breach. The alleged loss must be a direct consequence of the breach of contract, although the breach need not be the sole cause of the loss. Our team of highly experienced litigation solicitors would be happy to discuss your contract dispute to ensure you make the right decisions. Please do call or.

Key information

• •you must be able to prove that the breach of contract directly caused the lost profits; and
• •that loss of profits was a foreseeable consequence of the breach of contract; and
• •being able to demonstrate that you have attempted to mitigate losses as a result of the breach.
• •But for method – this method calculates the profits that would have been ‘but for’ the defendant’s breach.
• •Comparison of before and after – this is a method where the profitability before and after the claimant’s breach is assessed to measure the loss of profit baseline.
• •Yardstick method – an expert uses data of other companies undertaking similar work and in the same region to calculate profitability and earnings. This method can be used when there isn’t sufficient information about the company’s profitability.
• •A claim for loss of profits is most common with construction disputes but can also be claimed in other types of contracts.
• •Under English law, successfully claiming lost profits after breach of contract is difficult. The amount of damages (quantum) of a claim can easily be overlooked when deciding to sue for breach of contract. A full and proper assessment is strongly advisable before starting a legal claim.
• •If you need specialist, experienced lawyers for a contract dispute, we have an excellent team. Please do get in contact.
• •To successfully recover lost profits as a result of breach of contract there are 3 key elements :-
• •* you must be able to prove that the breach of contract directly caused the lost profits; and
• •* that loss of profits was a foreseeable consequence of the breach of contract; and

Practical guidance

• •Source: [Can you claim loss of profits in a contract dispute?](https://www.taylor-rose.co.uk/posts/can-you-claim-loss-of-profits)

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