Ace the NALA Certified Paralegal Exam 2024 – Unlock Your Legal Superstar Potential!

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.