Which type of damages directly results from a breach and represents straightforward costs?

Direct damages arise directly from a breach of contract and are typically straightforward costs incurred as a result of that breach. These damages are intended to compensate the injured party for the actual losses they experienced due to the breach, making it relatively simple to quantify. For example, if a contractor fails to deliver materials as agreed, the costs incurred from sourcing replacement materials or lost profits from project delays would be considered direct damages.

In contrast, consequential damages refer to secondary effects that occur as a result of a breach, which are not immediate and may require more complex calculations to establish. Punitive damages are intended to punish the breaching party for particularly egregious conduct and are not based on the actual losses sustained. Compensatory damages is a broader category, encompassing both direct and consequential damages, with the primary aim of making the injured party whole following a breach. Therefore, while the other options serve different purposes, direct damages specifically deal with the immediate, quantifiable losses stemming directly from the breach.