What is compensatory damages intended to provide?

Compensatory damages are designed to restore the injured party to the position they would have been in had the harm not occurred. The main objective is to provide financial compensation that reflects the actual losses the individual suffered due to the wrongful act. This can include tangible losses such as medical expenses, lost wages, and property damage, as well as intangible losses, including pain and suffering. By focusing on actual losses, compensatory damages aim to ensure the victim receives a fair monetary award that corresponds to their specific circumstances and the impact of the wrongdoing on their life.

Other options, such as punitive measures or rewards for exemplary behavior, do not relate to the purpose of compensatory damages. Instead, they focus on different aspects of legal penalties or motivations that do not align with compensatory principles.