Law Society of Ontario (LSO) Paralegal Practice Exam

Which of the following is NOT a type of damages recognized in civil law?

1. Aggravated damages

2. Liquidated damages

3. Punitive damages

4. Speculative damages

The correct answer is: Speculative damages

In civil law, damages are typically awarded to compensate a party for loss or injury, and they can be classified into various recognized types based on the nature and purpose of the compensation. Aggravated damages, liquidated damages, and punitive damages are all legitimate forms of damages that serve specific functions in civil litigation. Aggravated damages are awarded in cases where a plaintiff has experienced intangible harm, such as emotional distress, due to the defendant’s conduct. Liquidated damages refer to a predetermined sum that parties agree upon in a contract, which is to be paid in the event of a breach, clearly establishing the compensation that will occur if a specific event takes place. Punitive damages, also known as exemplary damages, go beyond mere compensation and are intended to punish the defendant for particularly egregious behavior and deter others from similar actions. On the other hand, speculative damages are not recognized in civil law because they relate to potential losses that are uncertain or conjectural, rather than actual damages that have been proven or could be proven with reasonable certainty. Courts generally do not award speculative damages as there is a need for a clear basis of calculation, ensuring that compensation reflects actual losses or injuries sustained by the plaintiff. Thus, recognizing the differences in these types underlines