A reasonable forecast of damages in a contractual breach scenario involves an estimate that is closely aligned with the expected or actual harm suffered as a result of the breach. This forecast should neither be overly speculative nor punitive, and it should represent a genuine effort to quantify foreseeable losses at the time of contract formation.
For example: If a contractor fails to complete a renovation on time, a reasonable forecast of damages might include the additional rental costs incurred by the homeowner while waiting for the work to be completed, rather than a flat penalty unrelated to actual losses.