Practice Quiz

Paralegal Exam Prep

Category - Legal System

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The term “compensatory damages” refers to ______________.
  1. Damages that did not result directly from the breach or injurious act.
  2. Damages intended to punish the party in breach or who acted wrongfully.
  3. Damages that allow the plaintiff to recover an amount roughly equal to the loss sustained.
  4. Damages that allow the plaintiff to recover the fees and costs incurred in pursuing the claim.
Explanation
Answer: C - Damages that allow the plaintiff to recover an amount roughly equal to the loss sustained. Compensatory damages consist of an amount sufficient to compensate the injured party for the loss suffered. Black’s Law Dictionary 170 (2d Pocket Ed. 2001). Compensatory damages are sometime called actual damages.
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