Compensatory damages are awarded _.
A) to a party based on the amount stipulated in a clause in the contract
B) to place the injured party in the position it would have been in had the terms of the contract been performed
C) to deter the defendant and others from doing the same act again
D) to help a party recover court costs if it is injured by a breach of contract but cannot show real damages

Question

Quizplus · Accepted Answer

Compensatory damages are intended to compensate the injured party for losses suffered as a result of a breach of contract, and place them in the position they would have been in had the contract been performed properly. They are typically calculated based on the actual financial losses suffered by the plaintiff as a result of the breach. Choices A, C, and D do not accurately reflect the purpose or nature of compensatory damages.

Compensatory Damages Are Awarded _