The reliance
interest is a
damage theory in the
law of contracts. In short, when there is a
breach of contract, one can pursue the reliance interest to get back in damages an
amount sufficient to put one in the
position that one would have been in had the contract not been signed. For example:
Seller contracts with
buyer to sell 1000
bushels of
apples at 8 dollars a bushel. Buyer buys a machine to turn the apples into applesauce, at a cost of 5000 dollars. Seller breaches. Pursuing reliance interest, the buyer can sue for the cost of the
applesauce machine, which buyer purchased in reliance of the delivery of the apples from the seller.