The contract is one of the legal means used primarily by all individuals and organizations to satisfy the needs in all aspects of life, so the contract always plays an important role for the operation of the economy. Due to the importance of contracts for social life, the legal systems in the world have set contract laws at the center of private law and are always interested in completing and developing this legal field.
Compensation for damage caused by breach of contract is an important legal measure to compensate the aggrieved party (the obligee) for losses as a result of breach of contract. In legal systems, in principle compensation for damages is a measure to overcome the damage that occurred to bring the damaged party into the position that the party should have been if the contract was done properly. However, legal systems also have differences in this measure, such as compensated damages, legal grounds for applying damages, determining compensation levels, a circumstance for exempting from liability for compensation.
Recovery for lost profits is one of the remedies that is being paid attention and are controversial in the international sale of goods disputes. Accordingly, the aggrieved party will receive the "benefit of the bargain." In theory, the aggrieved party may be compensated for the actual losses incurred by the breach of the contractual obligation and the aggrieved party will also be compensated for any net profit, including lost profits due to the other party's contract violation.