The goal of many contracts made between real estate developers and construction professionals in Nashville aim to ensure that disputes will not arise in the future. Sadly, this is not always the case and a party to a contract could sue for breach of contract. If so, there are a variety of compensatory damages they could pursue.
Compensatory damages vs. non-compensatory damages
Compensatory damages are essentially financial damages. They are awarded in a civil suit to the prevailing party. Other types of damages may be available, such as specific performance and recission, but these damages do not award money to the prevailing party. Compensatory damages award money to the prevailing party.
Types of compensatory damages
One type of compensatory damages is general damages. These are damages paid to recover the direct losses and necessary costs incurred due the breach. These may take the form of a refund, reimbursement of expenses or payment for increased costs incurred.
Another type of compensatory damages is special damages, also referred to as “consequential damages.” These damages cover losses incurred due to extraordinary conditions that would not necessarily be predictable. That is, to say, the breach causes these damages but not in a direct way. To be awarded special damages, the non-breaching party must be able to show that the breaching party was aware of these extraordinary circumstances when the contract was drafted.
Learn more about breach of contract
Compensatory damages are available to alleviate the financial harms a party incurred due to breach of contract. Non-compensatory damages are also available in some cases, but not all. Ultimately, those who feel they have a breach of contract claim or other legal disputes will want to take all the steps necessary to ensure they understand their rights and options for compensation.