The purpose for an award of punitive damages in a breach of contract is to put the innocent party in the same position it would have been in if the contract had been performed.

Question

Quizplus · Accepted Answer

Punitive damages are not intended to compensate the innocent party for their losses, but rather to punish the breaching party for their misconduct, such as fraud or intentional wrongdoing. The purpose of damages in a breach of contract is to compensate the innocent party for their losses, not to punish the breaching party.

The Purpose for an Award of Punitive Damages in a Breach