Are compensatory damages direct or indirect?

Asked by: Mrs. Lottie Quigley  |  Last update: February 19, 2022
Score: 4.9/5 (39 votes)

For example, consequential damages are a potential type of expectation damages

expectation damages
Expectation damages are damages recoverable from a breach of contract by the non-breaching party. An award of expectation damages protects the injured party's interest in realising the value of the expectancy that was created by the promise of the other party. › wiki › Expectation_damages
that arise in contract law. When a contract is breached, the recognized remedy for an owner is recovery of damages that result directly from the breach (also known as "compensatory damages").

Are compensatory damages direct?

Compensatory Damages. Damages paid to directly compensate the nonbreaching party for the value of what was not done or performed are compensatory damagesIn contract, damages paid to compensate the nonbreaching party for the direct loss suffered..

What are direct vs indirect damages?

When lawyers talk about “direct damages” caused by a breach of contract, they specifically mean those damages directly and immediately resulting from one side's violations of the contract. ... Indirect damages have all sorts of labels: consequential, incidental, indirect, exemplary, special, enhanced, punitive, etc.

Are consequential damages direct or indirect?

Consequential damages are also referred to as special damages or indirect damages. Such indirect damages are damages that do not necessarily flow from the breach of contract but are secondary in nature or indirect to breach.

What are examples of indirect damages?

Indirect Damages means loss of production, loss of profit, loss of use, loss of contracts or any other indirect loss.

Direct v Consequential Damages

30 related questions found

What are direct damages examples?

Direct Damages means actual, direct damages incurred by the claiming party which include, by way of example (a) erroneous payments made by PROVIDER or CUSTOMER as a result of a failure by PROVIDER to perform its obligations under an MOA or PSA, (b) the costs to correct any deficiencies in the Services, (c) the costs ...

What are considered direct damages?

Direct damages are “the necessary and usual result of the defendant's wrongful act; they flow naturally and necessarily from the wrong.”[1] Direct damages are intended to compensate the plaintiff for the loss incurred that was foreseeable by the defendant from his wrongful act.

What are compensatory damages Provide example s?

Compensatory damages are typically awarded in medical malpractice lawsuits, usually for medical bills, hospital bills, rehabilitation expenses, and compensation for lost earnings.

What is the difference between compensatory damages and consequential damages?

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 lost wages compensatory damages?

California law allows for plaintiffs to recover lost wages in personal injury cases. ... Both lost wages and lost earning capacity are part of the compensatory damages a plaintiff can recover for a defendant's negligence, gross negligence, recklessness, intentional wrongful acts or strict liability.

What is the purpose of compensatory damages?

Compensatory damages, like the name suggests, are intended to compensate the injured party for loss or injury. Punitive damages are awarded to punish a wrongdoer.

Are indirect and consequential damages the same?

For example, consequential damages are a potential type of expectation damages that arise in contract law. ... In addition to the compensatory damage, an owner can also seek for consequential damages (sometimes referred to as "indirect" or "special" damages), which include loss of product and loss of profit or revenue.

What are the different kinds of damages?

  • ACTUAL/ COMPENSATORY DAMAGES. Purpose. Actual or compensatory damages simply make good or replace the loss caused by the wrong. ...
  • MORAL DAMAGES. Purpose. ...
  • NOMINAL DAMAGES. Purpose. ...
  • TEMPERATE DAMAGES. Purpose. ...
  • LIQUIDATED DAMAGES. Purpose. ...

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.

Are general and compensatory damages the same?

Compensatory damages are further categorized into special damages, which are economic losses such as loss of earnings, property damage and medical expenses, and general damages, which are non-economic damages such as pain and suffering and emotional distress.

Are speculative damages compensatory damages?

Alleged injuries or losses that are uncertain or contingent and cannot be used as a basis of recovery for TORT or contract actions. In addition, when compensatory damages can be proved with approximate accuracy and determined with some degree of certainty, it is essential that they be so proved. ...

Is a tort and a compensatory damage the same thing?

Damages in tort are generally awarded to restore the plaintiff to the position he or she was in had the tort not occurred. In law, damages are an award, typically of money, to be paid to a person as compensation for loss or injury. Damages are classified as compensatory (or actual) damages and punitive damages.

What are compensatory damages also known as?

Also known as actual damages. The amount of money awarded to a party in a civil action to compensate for an injury or loss caused by another party's unlawful conduct. The purpose of compensatory damages is to make the claimant "whole," not to punish the wrongdoer.

Are compensatory damages the same as punitive damages?

Compensatory damages are given to the injured victim to help pay for medical expenses and other damages created, while punitive damages are meant to penalize the at-fault party.

What are compensatory damages quizlet?

Compensatory damages are paid to compensate the plaintiff for loss, injury or harm suffered. Compensatory damages in tort are referred to as reliance damages. Compensatory damages in contract are referred to as expectation damages.

Are punitive damages indirect?

Consequential damages are also commonly referred to as “indirect damages” because they arise indirectly from a breach due to various events that flow from a breach. ... Punitive damages are intended to punish and deter certain behavior and may not be tied to the relevant economic loss of the aggrieved party.

What is indirect contract?

GFC Indirect Contract means any agreement between GFC Lending, LLC and a dealer in respect of financing motor vehicle retail installment or conditional sale contracts originated by such dealer.

Which loss is an example of a direct loss?

Direct Loss Example

If a tornado strikes a town and takes the roof off the building, a direct loss would include damage to the structure, as well as to equipment, furniture, inventory or other items inside. Fire and smoke damage would count as a direct loss. So would theft, or a car crashing through the front window.

What are general damages?

Damages that arise directly and inevitably from a breach of contract. In other words, those damages that would be theoretically suffered by every injured party under these circumstances.

What are the 6 types of damages?

There are six different types of damages: compensatory, incidental, consequential, nominal, liquidated, and (sometimes) punitive.
  • Compensatory Damages. ...
  • Incidental Damages. ...
  • Consequential Damages. ...
  • Nominal Damages. ...
  • Liquidated Damages. ...
  • Punitive Damages.