Introductory Business Law CLEP Prep Practice Exam

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What type of damage is not available in cases involving breach of contract?

Compensatory Damages
Special Damages
Restitution Damages
Nominal Damages

The correct answer is: Nominal Damages

Nominal damages are not available in cases involving breach of contract because they are a type of damage used to recognize a legal violation without actual monetary loss. Breach of contract cases involve monetary damages, so nominal damages would not be applicable. Option A, compensatory damages, are awarded to the non-breaching party in order to compensate for their actual loss due to the breach of contract. Option B, special damages, are also known as consequential or indirect damages and are awarded for losses that were foreseeable at the time of contract formation. Option C, restitution damages, involve returning any property or money that was received by the breaching party to the non-breaching party. This type of damages is meant to "restore" the non-breaching party to their original position before the contract was made. Overall, the other options are not applicable in cases involving breach of contract because they either