Compensatory damages replace what was lost because of what the breaching party did and for this reason are often said to make th

Question

Elena L [17]

4 years ago

11

Compensatory damages replace what was lost because of what the breaching party did and for this reason are often said to make th

e person whole.

Business

1 answer:

Hunter-Best [27] · Answer 1 · 2021-12-22T16:42:36+03:00

Answer:

True

Explanation:

Usually compensatory damages are assigned as a measure of the difference between the promised performance of a contract and the actual performance of the contract.

For example, I sign a contract to buy a brand new Honda Civic but the dealer sends me a used car. I can sue the dealer for compensatory damages because he didn't perform correctly, but the court will not assign me $1 million, it will me assign the difference between the value of a new car and a used car plus some damages or costs incurred.