Which damages refer to specific losses incurred as a result of a breach?

The correct answer identifies damages associated with specific losses incurred directly as a result of a breach of contract. These specific losses typically arise from the direct impact of the breach rather than any indirect or consequential effects. In this context, the focus is on how the breach has resulted in measurable financial losses for the aggrieved party.

Consequential damages, in contrast to other forms of damages, are those losses that occur not directly from the breach itself but rather as a secondary result, often stemming from the unique circumstances surrounding the non-performance. They typically involve lost profits or other indirect impacts that could have been foreseeable at the time the contract was made.

Understanding this distinction is crucial, as it helps in determining what type of damages can be claimed in a legal dispute. The concept of specific losses leading directly from the breach ensures that the claimant can prove and quantify these damages effectively. Other forms of damages, such as compensatory damages, liquidated damages, and punitive damages, serve different purposes and are not limited to specific losses caused directly by the breach.