Final answer:
Compensatory damages are the amount of money that a court believes will restore a plaintiff to the position they were in before the defendant's conduct caused the injury. These damages are awarded to compensate the injured party for their losses.The correct answer is option 2.
Step-by-step explanation:
The amount of money that a court believes will restore a plaintiff to the position he was in before the defendant's conduct caused the injury is referred to as compensatory damages.
Compensatory damages are awarded to compensate the injured party for their losses, such as medical expenses, lost wages, or pain and suffering.
They aim to restore the plaintiff to the same financial and emotional position they were in before the injury.The correct answer is option 2.