Compensatory damages compensate an injured party for damages arising directly from the loss of a bargain caused by a breach of contract.

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Compensatory damages are awarded to compensate the injured party for their actual loss or damages suffered as a result of the breach. This includes direct damages arising from the loss of the bargain that the injured party would have received if the contract had been fulfilled.

Compensatory Damages Compensate an Injured Party for Damages Arising Directly