NALA Certified Paralegal Practice Exam

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Master the NALA Certified Paralegal Exam with our comprehensive practice quiz. Tailored to mirror the real test, it's the perfect tool to assess your readiness, boost your confidence, and enhance your study strategy

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Damages that compensate the non-breaching party to a contract for the loss of the bargain are called:

Consequential
Punitive
Liquidated
Compensatory

The correct answer is: Compensatory

Compensatory damages are awarded to the non-breaching party to a contract in order to compensate for any losses or damages incurred by the breach of contract. Consequential damages (choice A) are a type of compensatory damages that are awarded for foreseeable indirect losses resulting from the breach. Punitive damages (choice B) are awarded as a form of punishment for wrongdoing, and are not typically awarded in contract cases. Liquidated damages (choice C) are a predetermined amount of damages agreed upon in the contract, and are not awarded by a court as a form of compensation. Therefore, the best answer is D.