What is the purpose of compensation in legal terms?

Compensation in legal terms serves primarily to restore justice to individuals who have been wrongfully harmed. Its fundamental aim is to provide a remedy and financial restitution to the victim of a wrongful act or negligence, helping to alleviate the impact of their injuries or losses. This compensation seeks to return the individual to the position they would have been in had the harm not occurred, addressing both economic losses and, in some cases, emotional distress.

While deterrence and punishment can be associated with certain aspects of legal frameworks, such as criminal law, they do not represent the primary goal of compensation, which is focused on the victim's recovery and justice. Compensation specifically targets the needs of the wronged party rather than serving a broader societal purpose or addressing misconduct in a punitive sense. Public service opportunities do not relate to the concept of compensation in terms of addressing individual harm or legal justice.

Therefore, option B correctly identifies the purpose of compensation as being fundamentally about restoring justice to those who have been wronged.