What type of damages include out-of-pocket expenses like survey or title inspection costs?

Reliance damages are intended to compensate a party for the expenses incurred in anticipation of the contract being fulfilled. This includes out-of-pocket expenses such as survey or title inspection costs that a party may have paid while preparing to enter into or execute a contract. These damages focus on the reliance of the injured party on the promise of the other party and are designed to put them in the position they would have been in had the contract never been made.

In contrast, expectation damages aim to cover the loss of expected benefits from a contract. Punitive damages are intended to punish a wrongdoer and deter future misconduct, while consequential damages refer to losses that occur as a foreseeable result of a breach but go beyond the direct losses. Therefore, reliance damages appropriately cover expenses incurred prior to a contract's execution and directly relate to out-of-pocket costs like surveys and inspections.