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Compensatory damages

MEDICAL,USA: Monetary payment awarded in court for actual loss or injury to a person or property sufficient in the amount to indemnify the injured person for the loss suffered. Also called compensatories.
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The award, usually monetary, that is intended to compensate the claimant for injury sustained. In addition to actual loss or injury, this term may include amounts for expenses, loss of time, bodily suffering and metal suffering but does not include punitive damages.
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The total of monetary loss experienced by the injured party are compensatory damages and can include special damages and general damages. The distinction between special damages and general damages is that the former can be calculated accurately from the records of actual expenses incurred or financial losses (e.g., loss of salary etc.) suffered whereas the letter are estimated by courts taking into account a number of factors relevant to individual cases.

Competency

This is one of the elements that must be present in order to have a legal contract. It relates to the fitness or ability of either of the parties to the contract. An example of incompetency would be an alcoholic or a mental incompetent.