Contracts & ExecutionQuestion 848 of 1605
Punitive (exemplary) damages are generally:
a.Not recoverable for a simple breach of contract but may be available for certain torts like fraud
b.The same thing as liquidated damages
c.Available in every construction dispute
d.Routinely awarded for ordinary breach of contract
Explanation
Punitive damages are meant to punish and deter especially wrongful conduct and are generally not recoverable for an ordinary breach of contract; contract remedies focus on compensating the injured party's expectation loss. Punitive damages may be available for certain torts, such as fraud or malice, that accompany the conduct. They are not routine, not available in every dispute, and are distinct from liquidated damages, which are a pre-agreed compensatory estimate.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)