Appeal No. 2025 / 360 – Civil Appeal – Summary of Rule.

If the debtor fails to perform his contractual obligation without justification, or delays in performing it, he is liable for compensation for the resulting damage.

The judge is responsible for assessing the amount of compensation in contractual liability if it has not been predetermined by law or by the contract.

Compensation includes both the loss suffered by the creditor and the profit missed, provided that such loss or missed profit is a natural consequence of the non-performance or delay in performance.

The implication of this is that the debtor is not liable for unforeseeable damages, unless he has committed fraud or gross negligence. The reason for this rule lies in the nature of contractual liability.