reliance loss
Also known as wasted expenditure. An alternative test for the award of damages for breach of contract. expectation loss is the normal measure for assessing damages for breach of contract. However, provided the innocent party has good reason not to pursue damages for expectation loss, he may be able to recover damages to put him in the position he would have been if the contract had never been performed (reliance loss). This would compensate the innocent party for expenses incurred and losses suffered in reliance on the contract. The object is to put the claimant in the same position he would have occupied had the contract never been made, that is, to prevent unjust impoverishment. Expectation loss and reliance loss are mutually exclusive to prevent double recovery.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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