Special damages are a type of damages that are awarded in contract law cases where the non-breaching party can prove that they suffered specific financial losses as a direct result of the breach of contract. Unlike general damages, which are awarded for losses that are more difficult to quantify, such as pain and suffering, special damages are awarded for losses that can be easily calculated.

Special damages are also known as consequential damages, and they are awarded to compensate the non-breaching party for any losses they may have incurred as a direct result of the breach of contract. For example, if a contractor breaches a contract with a homeowner, and as a result, the homeowner must hire another contractor at a higher price, the homeowner may be awarded special damages for the additional costs they incurred.

In order to be awarded special damages, the non-breaching party must prove that the damages were a direct result of the breach of contract, and that they were foreseeable at the time the contract was signed. This means that the non-breaching party must provide evidence that the damages were a natural and probable consequence of the breach of contract, and that the breaching party could have reasonably foreseen them at the time the contract was signed.

Examples of special damages in contract law include:

1. Lost profits: If a non-breaching party can prove that they lost profits as a result of the breach of contract, they may be entitled to special damages to compensate them for these losses.

2. Extra expenses: If a non-breaching party had to incur additional expenses as a result of the breach of contract, such as hiring additional workers or renting equipment at a higher price, they may be entitled to special damages for these expenses.

3. Loss of use: If a non-breaching party is unable to use the item or service that was promised in the contract, they may be entitled to special damages for the loss of use of the item or service.

4. Property damage: If a non-breaching party suffers property damage as a result of the breach of contract, they may be entitled to special damages to compensate them for the cost of repairing or replacing their property.

In conclusion, special damages are a type of damages awarded in contract law cases where the non-breaching party can prove that they suffered specific financial losses as a direct result of the breach of contract. To be awarded special damages, the non-breaching party must provide evidence that the damages were a direct result of the breach of contract and were reasonably foreseeable at the time the contract was signed. Examples of special damages include lost profits, extra expenses, loss of use, and property damage.