Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI), to obtain health insurance for Hybrid employees. If ISI breaches the contract and Hybrid is awarded compensatory damages, the purpose would be to
A) establish, as a matter of principle, that ISI acted wrongfully.
B) provide Hybrid with funds for a foreseeable loss beyond the contract.
C) provide Hybrid with funds for its loss of the bargain.
D) punish ISI and set an example to deter others from similar acts.

Question

Quizplus · Accepted Answer

Compensatory damages aim to cover the loss of the bargain, putting the injured party in the position they would have been in if the contract had been fulfilled.

Hybrid Corporation Enters into a Contract with Insure Service, Inc