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The majority of American jurisdictions do not allow punitive dam- ages for breach of contract unless the breach constitutes an independ- ent tort. Increasingly, courts and commentators have relied on the the- ory of "efficient breach" to explain the rule against punitive damages in contracts.
In a contract case, punitive damages are generally not awarded. This is because the law generally recognizes that parties should be allowed to breach a contract where it would be more economically efficient to do so.
An award of compensatory damages is the most common of the legal remedies for breach of contract. The calculation of compensatory damages is based on the actual losses you have sustained as a result of the breach of contract. They typically fall into two categories: expectation damages and consequential damages.
27-1-220. Punitive damages -- when allowed -- limitation. (1) Except as otherwise expressly provided by statute and subject to subsection (3), a judge or jury may award, in addition to compensatory damages, punitive damages for the sake of example and for the purpose of punishing a defendant.
Punitive (or ?exemplary?) damages are different in that their purpose is not to compensate but to punish someone for bad behavior. Punitive damages in Ontario are very rare ? awarded only in the most exceptional cases involving conduct that is of a ?harsh, vindictive, reprehensible and malicious nature.? (Hockley v.
Punitive damages are rarely awarded for breach of contract. They arise more often in tort cases, to punish deliberate or reckless misconduct that results in personal harm.
A petition must contain only a short and plain statement of the claim that shows the plaintiff's entitlement to relief and a demand for judgment. The petition should be simple, concise and direct, and it should give fair notice of the nature of the plaintiff's claim and the grounds on which it is based.
Four Types of Damages Available in a Breach of Contract Compensatory damages. Compensatory damages aim to restore the party who did NOT breach the contract back to the position they would have been in if the other party had held up their end of the deal as promised. Punitive damages. ... Nominal damages. ... Liquidated damages.