Rachel contracted with Steven to cater her wedding for $20,000.Steven failed to deliver on the day of the wedding,which forced Rachel to order food from a restaurant that cost her $30,000.What amount in compensatory damages does Steven owe Rachel?

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Quizplus · Accepted Answer

Steven owes Rachel $10,000 in the form of compensatory damages. Compensatory damages are court-awarded damages to put a plaintiff in the same position as if a contract had been performed. Compensatory damages are calculated depending on the damages the defendant suffered. In this case, the damage is calculated based on the difference in market price versus contract price, the difference between $30,000 and $20,000, which is $10,000. Therefore, Steven has to pay $10,000 in compensation to Rachel.

Rachel Contracted with Steven to Cater Her Wedding for $20,000