Compensatory Damages are divided into which two types?

• A. Economic damages and non-economic damages
• B. Nominal damages
• C. Special damages and general damages
• D. Direct damages and indirect damages

Answer: (C)

Compensatory damages are meant to reimburse for actual losses from a wrongful act, and they’re categorized into two kinds: general damages and special damages. General damages cover non-economic harms that aren’t easily measurable, such as pain and suffering, emotional distress, and loss of enjoyment of life. Special damages cover economic losses that are concrete and can be documented—medical expenses, hospital bills, rehabilitation costs, and lost wages or future earnings. This distinction matters because it separates intangible harms from tangible financial costs, ensuring both types of impact are compensated. The other terms don’t fit this two-category structure: nominal damages are a minimal award when no actual loss is proven, and direct/indirect or economic/non-economic terms describe different concepts or pairings rather than the standard two-category split used here.