When a breach of contract has occurred,the purpose of damages is to
A)make the case an example to the rest of the community that this type of behaviour will not be tolerated.
B)have the damages reflect the severity of the breach.
C)compensate the wronged party for the loss incurred.
D)provide a deterrent for the breaking of moral and legal obligations.
E)punish the party who has committed the breach by making him or her pay compensation.

Question

Quizplus · Accepted Answer

The purpose of damages in a breach of contract is to compensate the wronged party for the losses incurred as a result of the breach. The damages awarded should reflect the actual harm suffered by the innocent party and not exceed that amount. While deterrence and punishment may be secondary effects of awarding damages, they are not the primary purpose. Making an example of the party may not be appropriate in all cases, and the severity of the breach is only one factor in determining the appropriate amount of damages.

When a Breach of Contract Has Occurred,the Purpose of Damages