Project Management Professional (PMP) Exam Practice – Question1618

When a seller breaches a contract, the buyer cannot receive______________


A. Compensatory damages
B. Punitive damages
C. Liquidated damages
D. Consequential damages

Correct Answer: B

Explanation:

Explanation:
Punitive damages are designed to punish a guilty party and, as such, are considered penalties. Because a breach of contract is not unlawful, punitive damages are not awarded. The other remedies listed are available to compensate the buyer’s loss.