NALA Certified Paralegal Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

Question: 1 / 400

Damages that compensate the non-breaching party to a contract for the loss of the bargain are called:

Consequential

Punitive

Liquidated

Compensatory

Compensatory damages are awarded to the non-breaching party to a contract in order to compensate for any losses or damages incurred by the breach of contract. Consequential damages (choice A) are a type of compensatory damages that are awarded for foreseeable indirect losses resulting from the breach. Punitive damages (choice B) are awarded as a form of punishment for wrongdoing, and are not typically awarded in contract cases. Liquidated damages (choice C) are a predetermined amount of damages agreed upon in the contract, and are not awarded by a court as a form of compensation. Therefore, the best answer is D.

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