Question

Damages awarded to punish the wrongdoer are called ____________.

• A. Compensatory damages
• B. Nominal damages
• C. Exemplary damages
• D. Liquidated damages

Hint:

Exemplary damages are specifically meant to punish the wrongdoer and deter future misconduct, unlike compensatory damages, which are focused on making the victim whole again.

Answer 1

The Correct Option is C

1. Understanding Damages: Damages are compensation awarded to a plaintiff in a legal case to make up for harm or loss suffered.
2. Compensatory Damages: These are awarded to compensate for actual losses or injuries suffered by the plaintiff. They aim to restore the plaintiff to the position they were in before the harm occurred.
3. Nominal Damages: These are symbolic damages awarded when the plaintiff has suffered a legal wrong but has not suffered substantial harm or loss.
4. Exemplary (Punitive) Damages: These are awarded in cases of severe wrongdoing to punish the defendant for particularly egregious behavior and to deter others from engaging in similar actions.
5. Liquidated Damages: These are pre-determined amounts specified in contracts, meant to compensate for a breach, and are agreed upon by both parties beforehand.