Special damages are the damages that an aggrieved party can claim in addition to general damages for any loss they have suffered due to special circumstances known to both parties at the time of signing the contract. These damages are awarded to compensate the injured party for the specific losses they have incurred as a result of the breach of contract or other wrongful act.

Explanation:

When a party breaches a contract or commits a wrongful act, the injured party is entitled to claim damages to compensate for the losses they have suffered. General damages are the damages that are typically awarded to compensate for the direct and natural consequences of the breach or wrongful act. These damages are often foreseeable and can include compensation for physical injury, mental distress, or loss of reputation.

However, in certain cases, the injured party may have suffered additional losses that were not directly caused by the breach or wrongful act but were known to both parties at the time of entering into the contract. These additional losses are called special damages. They are awarded to compensate for the specific losses that the injured party has incurred due to the unique circumstances of the case.

Examples of special damages:

- Lost profits: If a party breaches a contract for the sale of goods, the injured party may be entitled to claim the lost profits they would have earned if the contract had been properly fulfilled.
- Additional expenses: If a party breaches a construction contract, the injured party may be entitled to claim the additional expenses they have incurred to complete the project due to the breach.
- Consequential damages: If a party breaches a contract for the delivery of goods, the injured party may be entitled to claim damages for any foreseeable losses that were not directly caused by the breach but resulted from the breach.

It is important to note that special damages must be proven with reasonable certainty and must be directly caused by the breach or wrongful act. The injured party must provide evidence to support their claim for special damages, such as invoices, receipts, or expert testimony.

In conclusion, special damages are the damages that an aggrieved party can claim in addition to general damages for any loss they have suffered due to special circumstances known to both parties at the time of signing the contract. These damages compensate the injured party for specific losses that are not directly caused by the breach or wrongful act but were foreseeable and known to both parties.