Question

What is the standard for an award of punitive damages for a contract breach

Answer 1

Soln. Punitive damages are not measured as actual loss rather they are counted into account for wrong behavior and misconduct that leads to actual damage or loss to an individual. They are awarded to prevent others from doing the same act.They are different from compensatory damages, that count for actual loss. In punitive damages, person in fault is awarded for unsocial and fraudulent behavior.

Standard for an award for punitive damages - This is measured indirectly. This count for the value of benefit, that will come through, if the damage was not done and contract was not breached. Value of benefit is replaced by the substitute and provided to the non-breaching party by the contract breaching party. So, it is awarded in the form of substitute for the damage being done if the contract was not breached through punitive damages.