In contract law, speculative damages refer to compensation for losses that are not certain and cannot be determined with reasonable accuracy. They are hypothetical and not recoverable because they depend on events that may or may not have occurred if the breach hadn’t happened.
For example: A band fails to show up for a concert, and the concert organizer seeks damages for the loss of an unknown number of potential attendees who might have purchased merchandise. This would be speculative, as there is no precise way to calculate those potential sales.