Compensatory damages, as the name implies, are intended to compensate a claimant for the actual loss, injury, or harm sustained. ... The term “consequential damages” is meant to indicate that the damages sought are merely an indirect “consequence” of the defendant’s conduct.
Are consequential damages compensatory?
Consequential damages (also known as special damages) are another form of compensatory damages . Special damages do not flow directly and immediately from the defendant’s act, but from some of the consequences of the act.
What is the difference between compensatory damages and consequential damages What are nominal damages and when do courts award nominal damages?
Compensatory damages compensate an injured party for injuries or damages. ... Consequential damages differ from compensatory damages in that they are caused by special circumstances beyond the contract. Nominal damages are awarded to an innocent party when no actual damage has been suffered .
What is the difference between compensatory damages versus consequential damages What is the significance of a nominal damage?
Compensatory damages compensate for the special loss suffered; consequential damages compensate for the foreseeable consequences of the breach; incidental damages compensate for the costs of keeping any more damages from occurring; nominal damages are awarded if the actual amount cannot be shown or there are no actual ...
What are examples of consequential damages?
- Loss of anticipated profits;
- Loss of business;
- Cost of unsuccessful attempts to repair defective goods;
- Loss of goodwill;
- Losses resulting from interruption of buyer’s production process;
- Loss of reputation; and.
- Loss of sales contracts because of delayed products.
What does it mean when nominal damages are awarded?
A trivial sum of money awarded to a plaintiff whose legal right has been technically violated but who has not established that they are entitled to compensatory damages because there was no accompanying loss or harm.
What is an example of nominal damages?
For example, an injured plaintiff who proves that a defendant’s actions caused the injury but fails to submit medical records to show the extent of the injury may be awarded only nominal damages. ...
What are the 3 types of damages?
There are 3 types of damages are: economic, non-economic, and exemplary .
How do you prove consequential damages?
To recover consequential damages, the claimant must prove they were (1) proximately caused by the breach and (2) were reasonably foreseeable at the time the parties entered into the contract . Determining foreseeability is one challenge, yet the more difficult hurdle is proving the amount.
What is an example of compensatory damages?
Also known as substantial damages. Damages awarded in respect of the actual losses suffered by the claimant. Examples of this type of damages include nominal damages, exemplary damages, restitutionary damages and liquidated damages . ...
What are the 2 types of compensatory damages?
There are two types of compensatory damages— general and actual .
What are the 6 types of damages?
- Actual or compensatory Damages.
- Moral Damages.
- Exemplary or corrective Damages.
- Liquidated Damages.
- Nominal Damages.
- Temperate or moderate Damages.
What are the most frequently awarded legal damages?
Compensatory damages : This is the most common breach of contract remedy. When compensatory damages are awarded, a court orders the person that breached the contract to pay the other person enough money to get what they were promised in the contract elsewhere.
What is the purpose of consequential damages?
Consequential damages, otherwise known as special damages, are damages that can be proven to have occurred because of the failure of one party to meet a contractual obligation, a breach of contract .
Can you sue for consequential damages?
CONSEQUENTIAL DAMAGES:
If you can prove that the other party knew or could have foreseen when the agreement was made, you can recover consequential damages . One common issue in a breach of contract case regarding consequential damages is whether you can recover for lost profits.
Why do we waive consequential damages?
Because the waiver of consequential damages can significantly control the amount of damages for which a contractor is assuming risk and greatly limit the owner’s ability to recoup many damages , it is arguably the most important provision in a construction contract.
