or within the "contemplation of the parties" when the parties agreed to the terms of the contract. The logic for proving foreseeability is that a party who can foresee a consequences of a breach of a contract can modify the contract price accordingly to compensate for the risk that is assumed. Further, in order to recover damages caused by a breach, the non-breaching party must act reasonably and timely to mitigate its damages.

The Supreme Court of the United States has held