Repair Service enters into a contract to fix washing machines in Soapy Suds Company's coin-operated laundries. Repair breaches the contract. Soapy is awarded compensatory damages. The purpose is to
A)establish, as a matter of principle, that Repair acted wrongfully.
B)provide Soapy with funds for a loss beyond the contract.
C)provide Soapy with funds for its loss of the bargain.
D)punish Repair and deter others from similar acts.

Question

Quizplus · Accepted Answer

Compensatory damages are intended to provide the non-breaching party with the monetary equivalent of what they would have received if the contract had been fully performed. In this case, Soapy Suds Company is awarded compensatory damages to cover the loss of the bargain they had with Repair Service, which is the benefit they expected to receive from the contract to fix washing machines.

Repair Service Enters into a Contract to Fix Washing Machines