Which of the following best describes the purpose of awarding damages for breach of contract?

Answer options:

To punish the party in breach for their failure to perform.

To put the injured party in the position they were in before the contract was made.

To put the injured party in the position they would have been in had the contract been performed.

To force the breaching party to complete the contractual obligations.

How to approach this question

Recall the fundamental principle of expectation loss in contract law.

Full Answer

C.To put the injured party in the position they would have been in had the contract been performed.✓ Correct

The primary purpose of contract damages is compensatory: to protect the expectation interest by putting the claimant in the financial position they would have occupied had the contract been properly performed.

Common mistakes

Selecting the tortious measure of damages (restoring to the pre-incident position).

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 1

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Which of the following best describes the purpose of awarding damages for breach of contract?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA LW — Corporate and Business Law Practice Exam 1

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