Why are speculative losses usually not awarded as damages in tort cases?

In the context of tort law, speculative losses are generally not awarded as damages because they lack the necessary standard of proof required by the legal system.

To be recoverable, damages must be established with reasonable certainty rather than being based on conjecture or contingency. Speculative damages, such as anticipated profits that depend on uncertain future events, are considered too remote or hypothetical to satisfy the court's requirement for evidence. The law maintains that a plaintiff must provide a reliable basis for calculating their losses to ensure that compensation is fair and grounded in fact, rather than mere possibility.1