Explain Compensatory damages
What do you mean by Compensatory damages?
Expert
Compensatory damages require the defendant to pay for the losses the plaintiff suffered as a result of the tort. As noted earlier when comparing torts as well as bonds, the objective which put the plaintiff back to the situation the plaintiff enjoyed before the tort occurred.
Compensation will be awarded only if the defendant’s wrongdoing caused the plaintiff to suffer a loss and if the connection between the tort and that loss is not too remote. A loss is too remote if a reasonable person in the position of the wrongdoer could not have reasonably anticipated the harm that flowed from the act. As well, it is in the plaintiff’s best interest to take reasonable steps to mitigate the loss because the plaintiff will only be compensated for those losses that could not reasonably be avoided.
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1. GML owns 92% of the issued shares in Explorer Ltd. The remaining 8% of the shares are held by five individuals, including a Mr Owen who owns 0.5% of the issued shares. Mr Owen is a high profile individual who has at times been critical of the Chinese government’s activities in the South China
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