Ontario Mortgage Agent Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The purpose of damages in a contract dispute is to provide compensation to the party that has suffered a loss due to the breach of contract. When one party fails to fulfill their obligations as stipulated in the contract, the other party may be entitled to damages, which are intended to put them in the position they would have been in had the contract been performed as agreed. This serves not only to compensate for the actual loss incurred but also to deter parties from breaching contracts in the future, thereby upholding the integrity of contractual agreements.

Consideration refers to the value exchanged between parties in a contract, but it does not address the consequences of a breach. Material alterations relate to significant changes in the terms of a contract, which can invalidate the agreement if not properly handled. Assignment refers to the transfer of rights and obligations under a contract from one party to another, which is also separate from the purpose of damages. Therefore, understanding damages is crucial for recognizing the remedies available in contract law and ensuring that parties are held accountable for their agreements.