What is the general goal of awarding compensatory damages in a breach of contract situation?
A) return the parties to the situation that they were in prior to the contract
B) punish the breaching party for the wrongdoing
C) modify the contract terms to be more equitable to the parties
D) place the non-breaching party in the same position as if the contract had been fully performed
E) require the breaching party to actually do what was called for in the contract

Question

Quizplus · Accepted Answer

The general goal of awarding compensatory damages in a breach of contract situation is to place the non-breaching party in the same position as if the contract had been fully performed. Compensatory damages are intended to compensate for the actual loss suffered as a result of the breach. They are not meant to punish the breaching party or modify the terms of the contract.

What Is the General Goal of Awarding Compensatory Damages in a Breach