Which type of interest assesses what the claimant lost due to reliance on contract performance?

Reliance interest is focused on the losses incurred by a claimant due to their reliance on a contract that was expected to be performed. This means it compensates the claimant for expenses or losses that occurred because they relied on the promise or performance of the contractual agreement, regardless of whether they would have gained any benefit from the contract itself if it had been fulfilled.

When a party has incurred costs in preparation or has taken steps based on the expectation that the contract would be performed, they can claim reliance interest to recover those costs. This interest is intended to restore the claimant to the position they were in before they entered into the contract, rather than putting them in the position they would have been in had the contract been executed successfully.

Expectation interest, on the other hand, relates to what the claimant would have received had the contract been performed as agreed, which is distinct from the reliance interest focus. Equitable interest refers to a legal interest in property that may not give full ownership rights, and compensatory interest is a broad term that can apply to various principles of compensation rather than specifically assessing reliance losses.