Compensatory interest is interest awarded by the court to compensate the period of time between the sustaining of a loss and its reparation. This interest partakes in the principle of full reparation of the loss enshrined in Article 1382 of the Code of Civil Law (extra-contractual matter) and in Articles 1147 and 1149 of the Code of Civil Law (contractual matter). This interest is applied in obligations other than obligations limited to the payment of a sum of money.
A distinction is made between compensatory interest and default interest.
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