What does the expectation interest measure in unliquidated damages?

The expectation interest measures the position that the claimant expected to be in after the contract was performed. This principle is foundational in contract law, where the goal of awarding damages is to place the innocent party in the position they would have been in had the contract been fully performed.

In practice, this means assessing what benefits or profits the claimant anticipated receiving from the completion of the contract. By focusing on the expectation interest, the legal system aims to ensure that the aggrieved party is compensated for what they have lost in terms of opportunity and benefit due to the breach. This conceptual framework underlines the importance of the parties' intentions and the anticipated outcomes stipulated in the contract.

The other options do not accurately capture the essence of expectation interest. For instance, reliance damages focus on losses incurred due to reliance on the contract, while post-event damage amounts would not reflect the claimant's pre-breach expectation. Finally, while future profits could be part of the expectation interest, simply stating "all future profits" can be overly broad and does not address the specific context of the contract’s performance as expectation interest does.