Which of the following statements refers to punitive damages?
A) They are damages in excess of compensatory damages that the court awards for the sole purpose of deterring the defendant and others from doing the same act again.
B) They are damages awarded to the party that is injured by a breach of contract but cannot establish actual damages.
C) They are damages for nonperformance that are stipulated in a clause in the contract.
D) They are damages designed to place the non-breaching party in the position that party would have enjoyed had the terms of the contract been performed.

Question

Quizplus · Accepted Answer

Punitive damages are designed to punish the defendant for their actions and deter them and others from doing the same act again. They are not meant to compensate the injured party for their losses, which is the purpose of compensatory damages.

Which of the Following Statements Refers to Punitive Damages