Compensatory damages are typically assessed against the breaching party:
A) as a penalty for breaching the contract.
B) only under the UCC when the sale of goods is the subject of the contract.
C) to put the non-breaching party in the position it would have been in had the contract never been formed.
D) to put the non-breaching party in the position it would have been in if the contract hadn't been breached.

Question

Quizplus · Accepted Answer

Compensatory damages are intended to compensate the non-breaching party for the loss suffered as a result of the breach. The purpose is to put the non-breaching party in the position it would have been in if the contract had been performed, rather than punishing the breaching party. This is the most common type of damages awarded in breach of contract cases. It is applicable to all kinds of contracts and cannot be imposed as a penalty.

Compensatory Damages Are Typically Assessed Against the Breaching Party