Section 537 permits recovery of actual loss caused by breach and loss that the parties knew at the time of contracting could result from breach. The Code therefore focuses on compensating legally recoverable loss rather than automatically awarding a windfall.[1]
The claimant should be able to prove the loss and its connection to the breach.
Sources
- Nepal Law Commission, **National Civil Code, 2074**, Part 5, including ss. 504–541 and special contract chapters. View source