The award to a prevailing party in suit for breach of contract to recover costs incurred due to relying on the promise of the other party is called:
A) liquidated damages
B) nominal damages
C) punitive damages
D) compensatory damages
E) none of the other choices

Question

Quizplus · Accepted Answer

The award for costs incurred due to relying on the promise of the other party is a type of compensatory damages. Liquidated damages are a predetermined amount outlined in the contract, nominal damages are a small amount awarded when there is a technical breach but no actual loss or harm, and punitive damages are awarded to punish the breaching party for intentional or reckless behavior.

The Award to a Prevailing Party in Suit for Breach