What is the standard basis for compensatory damages in a breach of contract action?
1. Compensatory Damages. Compensatory damages (also called “actual damages”) cover the loss the nonbreaching party incurred as a result of the breach of contract. The amount awarded is intended to make good or replace the loss caused by the breach.
Are compensatory damages available for breach of contract?
Compensatory Damages An award of compensatory damages is the most common of the legal remedies for breach of contract. The calculation of compensatory damages is based on the actual losses you have sustained as a result of the breach of contract.
How are compensatory damages generally limited in contract cases quizlet?
Generally, compensatory damages are reduced by any loss that the innocent party has avoided. Sometimes, the buyer of goods breaches a contract before the seller produces the goods.
What general principles govern damages recoverable in contract?
Damages for breach of contract are subject to the principles of remoteness, causation and mitigation.
What damages are recoverable for breach of contract?
There are many types of damages for breach of contract that you may receive should a breach occur.
- Compensatory Damages.
- Liquidation Damages.
- Punitive Damages.
- Nominal Damages.
- Ordinary or General Damages.
- Equitable Remedies.
What is the compensation for breach of contract?
Damages are usually awarded to an injured party for losses suffered as a result of the defaulting party’s actions or non-actions. The purpose of an award of damages for breach of contract is to put the injured party in the position it would have been in had the contract been performed.
What are compensatory and consequential damages?
Compensatory damages compensate for the special loss suffered; consequential damages compensate for the foreseeable consequences of the breach; incidental damages compensate for the costs of keeping any more damages from occurring; nominal damages are awarded if the actual amount cannot be shown or there are no actual …
What do compensatory damages include?
Compensatory Damages – Compensating You for Your Expenses These are damages that reimburse a plaintiff for out-of-pocket costs and losses. These damages may include medical bills, lost wages, loss of earning potential, and even emotional distress.
What are the two types of damages generally available for breach of contract?
Generally, there are two types of damages: compensatory and punitive. (The term “damages” typically includes both categories, but the term, “actual damages” is synonymous with compensatory damages, and excludes punitive damages.)
What are the two types of damages generally available for breach of contract quizlet?
1. Compensatory (to cover direct losses and costs). 2. Consequential (to cover indirect and foreseeable losses).
Which damages are not recoverable for breach of contract?
-Liquidated Damages. Was this answer helpful?
What is the general principle of damages?
The general rule is that damages are meant to place the claimant in the same position as if the contract had been performed. Damages are usually awarded for expectation loss (loss of a bargain) or reliance loss (wasted expenditure).
Which of the following is an example of compensatory damages?
If the person who brought the lawsuit (known as the “plaintiff”) was physically injured, compensatory damages could include his medical bills, the pay he missed from taking too many sick days, and pay he will lose in the future from a reduced capacity to work.
What are the two types of compensatory damages?
There are two types of compensatory damages—general and actual. Actual damages are intended to provide funds to only replace what was lost. General compensatory damages awarded are more complex, as these compensatory damages do not represent a monetary expenditure.