Which damages are typically recoverable in breach of contract actions?

In breach of contract actions, compensatory damages are the amounts awarded to cover the losses that the non-breaching party incurred as a direct result of the breach. These damages are designed to make the injured party whole again, putting them in a position they would have been in had the contract been fulfilled. Compensatory damages can cover direct losses such as lost profits, costs incurred due to the breach, and any other quantifiable financial harm that arose from the failure to perform under the contract.

While other types of damages, like punitive, consequential, and nominal damages, may be relevant in certain contexts, they do not generally serve the same function in breach of contract cases. Punitive damages, for instance, are intended to punish wrongful conduct rather than to compensate for losses directly related to the breach. Consequential damages may also apply but are contingent on the foreseeability of those damages at the time the contract was made, meaning they are not automatically recoverable. Nominal damages represent a small sum awarded when a breach occurred without significant loss or injury, indicating that while a breach may have taken place, it did not cause meaningful harm to the non-breaching party.

Therefore, compensatory damages are typically the primary form of recovery sought and awarded in