Contracts & ExecutionQuestion 806 of 1605
The primary goal of compensatory ('expectation') damages for breach of a construction contract is to:
a.Put the injured party in the position they would have been in had the contract been fully performed
b.Punish the breaching party for wrongdoing
c.Return only the deposit that was paid
d.Award the injured party a windfall profit
Explanation
Compensatory or expectation damages aim to place the non-breaching party in the position they would have occupied if the contract had been fully performed, no better and no worse. Contract damages are generally not punitive; punishment is reserved for torts or statutory penalties. The remedy is not limited to a refunded deposit, nor is it meant to create a windfall; it measures the injured party's lost benefit of the bargain.
Practice all 1605 questions free — no signup required.
Related questions on this topic
- A landowner orally promises to sell a vacant lot to a contractor, and both shake hands. When the landowner backs out, the contractor sues to enforce the oral sale. The strongest defense the landowner has is:
- The main purpose of the Statute of Frauds is to:
- A material breach of contract is best described as a failure to perform that:
- After a contractor breaches, the owner has a legal 'duty to mitigate' damages, which means the owner must:
- A general contractor unequivocally tells the owner two weeks before the start date, 'We will not be doing your project at all.' This statement is an example of:
- The doctrine of 'substantial performance' generally allows a contractor who has performed in good faith with only minor, non-material defects to:
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)