Clarice pays Damien $10,000 to design an ad campaign for her Sweetwater Coffee Stand chain.The next day,Damien tells Clarice that he has accepted a job in San Francisco and cannot design her campaign.She files a suit against Damien.As compensatory damages,she can recover

Question

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Compensatory damages aim to put the non-breaching party in the same financial position they would have been in had the contract been fulfilled. In this case, Clarice paid Damien $10,000 for the design of an ad campaign, which he did not deliver. Therefore, she can recover the amount paid as compensatory damages, which is $10,000. Option A is incorrect because it is ten times the amount paid, which is not proportional to the damages incurred. Option C is too low and does not reflect the amount of the contract. Option D is incorrect because it assumes no damages were incurred, which is not the case.

Clarice Pays Damien $10,000 to Design an Ad Campaign for Her