What is a form of damages characterized by compensation for direct, tangible losses?

• A. Compensatory Damages
• B. Punitive Damages
• C. Consequential Damages
• D. Nominal Damages

Answer: (A)

Compensatory damages are intended to provide a monetary award to a plaintiff to compensate for direct and tangible losses resulting from another party's actions. These losses can include medical expenses, property repair costs, and lost wages. The goal of compensatory damages is to restore the injured party to the position they would have been in if the harm had not occurred, addressing the actual financial impact of the incident.

In contrast, punitive damages are meant to punish the wrongdoer for particularly egregious behavior and deter future misconduct, rather than to compensate the victim for losses. Consequential damages involve losses that are not directly caused by the incident but occur as a secondary effect, which can be more challenging to quantify. Nominal damages are small sums awarded when a legal wrong has occurred but where there is no substantial loss or injury, serving more as a recognition of the right being violated than as compensation for loss. Thus, compensatory damages specifically address the need for restitution for direct losses, making them the appropriate choice in this scenario.