What type of damages arise directly as a result of a breach of contract?

Direct damages, also known as general damages, arise directly from the breach of a contract. These damages are intended to compensate the injured party for the actual loss suffered due to the breach. They are typically quantifiable and can be directly traced back to the contract's failure. For example, if a contractor fails to deliver supplies resulting in the construction delay of a building, the additional costs incurred due to that delay would be considered direct damages.

This concept is pivotal in contract law as it emphasizes the importance of establishing a clear cause-and-effect relationship between the breach and the losses incurred. Direct damages aim to put the injured party in the position they would have been in had the contract been performed as agreed. Understanding this helps in assessing the potential liabilities in contractual agreements and reinforces the principle of compensating parties justly for their losses arising from a breach.