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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.
Because they are usually paid in excess of the plaintiff's provable injuries, punitive damages are awarded only in special cases, usually under tort law, if the defendant's conduct was egregiously insidious. Punitive damages cannot generally be awarded in contract disputes.
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.
Punitive damages are awarded when the defendant's conduct is determined to have been so "willful, malicious, or fraudulent" that it exceeds the legal criteria for mere or gross negligence. Punitive damages typically involve awards over and above the compensatory damage award.
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.
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.
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.
Your answer to the plaintiff's complaint should include all legal and equitable affirmative defenses available to you based on the facts. Your response to the complaint must be thorough, as any available defenses not timely raised or properly alleged may be waived.