The short answer
Contract damages aim to put you where you would have been if the contract had been performed. That usually means the benefit of the bargain, plus foreseeable losses that flow from the breach, minus anything you saved or reasonably could have avoided.
Why it matters
Knowing what is realistically recoverable shapes everything from the demand letter to the decision whether to sue. A strong breach claim with weak damages proof often settles for less than expected.
Where it fits in your case
From the moment a breach occurs, because the steps you take afterward affect what you can recover.
What to expect
Benefit of the bargain. The core measure is the value you were promised minus what you received.
Foreseeable losses. Indirect losses are recoverable only if they were reasonably foreseeable when the contract was made.
Reasonable certainty. Damages must be proven with reasonable certainty, not speculation.
Mitigation. Losses you could reasonably have avoided are generally not recoverable.
Contract limits. Liability caps, consequential damages waivers, and liquidated damages clauses can change the answer.
Attorney fees. In Illinois, each side usually pays its own fees unless a contract or statute says otherwise.
What to do now
Document your losses as they occur, with invoices and records.
Take reasonable steps to limit further losses, and keep a record of them.
Check the contract for caps, waivers, and fee provisions.
Separate direct costs from lost profits and other indirect losses.
What we need from you
The contract, invoices and payment records, evidence of the breach, and records of costs incurred because of it.
Common misconceptions
“We can recover punitive damages for a breach.” Generally not for breach of contract alone.
“The winner gets attorney fees.” Only if the contract or a statute provides for it.