What Damages Can Be Awarded?
There are two general categories of damages that may be awarded if a breach of contract claim is proved. They are:
How Are Compensatory Damages calculated?
The calculation of compensatory damages depends on the type of contract that was breached and the type of loss that was incurred. Some general guideli… Are There Any Limitations on The Award of Compensatory Damages?
An important limitation on the award of damages is the duty to mitigate. The nonbreaching party is obligated to mitigate, or minimize, the amount of dama… Compensatory damages in a contract claim are those types of damages that are meant to compensate the non-breaching party for their losses. These types of damages awards are usually issued if there has been a breach of contract . The term “compensatory damages” involves two types of damages awards: General damages and Specific damages.
Compensatory damages are an award of a sum of money which aims to compensate the claimant for his loss under the contract. This need not be limited to loss from the contract itself, and may compensate the innocent party for losses relating to subsequent contracts, which will be covered later in the chapter.
Compensatory damages are monetary damages that are awarded with the intent of compensating the non-breaching party for any losses suffered as a result of a contract breach. They are not designed to punish the breaching party, but merely make the party that was breached against “whole again,” as it is commonly phrased.
Compensatory damages compensate the plaintiff for the loss that they have suffered. These damages include things like direct medical costs that the plaintiff incurs or the loss of their future wages. They are intended to make the plaintiff ‘whole again.’
In contract law, if a court determines that damages will not properly compensate the injured party, the court may choose to award specific performance. In a tort case, the injured party can receive compensatory damages to compensate for all types of losses, including direct costs for medical car, property damage, or lost wages.