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Consider the following objectives of the law relating to damages: 1. Enrich the party who has sustained…

The object of damages is compensatory, i.e. to place the injured party as if the contract were performed (statement 3); it does not aim to enrich or to punish, so the answer…

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Consider the following objectives of the law relating to damages:
1. Enrich the party who has sustained loss by breach of contract
2. Punish the party who has committed the breach of contract.
3. Put the party, who sustained the loss, in the same position as if the contract has been performed.
Which of the statements given below is/ are correct?

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Answer and explanation

Correct answer C

The object of damages is compensatory, i.e. to place the injured party as if the contract were performed (statement 3); it does not aim to enrich or to punish, so the answer is "3 only".

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