In practice, if a party breaches the contract, the court may order that party to pay the "expectation damages" to the trading partner (the victim of the breach). By definition, expectation damages compensate the victim an amount that would give her the same payoff had the contract been carried out. For the remaining questions, suppose that when Emma decides to breach the contract (i.e., refuse to trade with Francesca), Francesca has not yet incurred the cost, and Emma will be ordered to pay expectation damages.