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Compensatory and Consequential Damages Essay Preview: Compensatory and Consequential Damages Report this essay Compensatory and Consequential DamagesCompensatory Damages ……..Direct damages. Difference between thevalue of what the breaching party was supposed to do under the contract and the value of what was actually done by the breaching party.Consequential Damages……..Special damages. Foreseeable at the time thecontract was formed..