Which type of damages is intended to restore the plaintiff to the position before the harm by compensating actual losses?

• A. Nominal damages
• B. Punitive damages
• C. Compensatory damages
• D. Liquidated damages

Answer: (C)

Damages that aim to restore the plaintiff to the position they were in before the harm are compensatory damages. The core idea is to reimburse actual losses suffered, so the plaintiff is made whole again. This includes economic costs like medical expenses, property repair, and lost wages, and, where applicable, non-economic harms such as pain and suffering or loss of enjoyment. The focus is on compensation for proven losses, not punishment or predetermined sums.

Nominal damages are symbolic and awarded when there’s a rights violation but no proven actual loss. Punitive damages go beyond compensation to punish particularly egregious conduct. Liquidated damages are pre-agreed amounts specified in a contract, intended to cover breach regardless of the actual loss.