Which type of damages is typically awarded for a breach of contract?

Compensatory and consequential damages are typically awarded for a breach of contract because they serve to compensate the non-breaching party for the losses incurred as a direct result of the breach. Compensatory damages are intended to cover the actual financial loss suffered, ensuring that the injured party is restored to the position they would have been in had the contract been fulfilled as agreed. This can include lost profits or costs that were incurred due to reliance on the contract being performed.

Consequential damages, on the other hand, address indirect losses that were a foreseeable result of the breach. For example, if a delayed shipment of goods causes a manufacturer to lose business or incur additional costs, those extra incurred costs may be classified as consequential damages. This indicates that both types of damages—compensatory and consequential—are relevant and can be pursued depending on the circumstances surrounding the breach.

The other types of damages mentioned in the choices are not the primary forms awarded for breach of contract. Punitive damages, which aim to punish the wrongdoer rather than compensate the victim, are generally not applicable in contract law unless there is an accompanying tort. Nominal damages, which are minor amounts awarded when a breach occurred but no significant loss was proven, may be granted, but