Courts typically award punitive damages in breach of contract cases.

Question

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Punitive damages are designed to punish the wrongdoer for his or her outrageous conduct. As a general rule, the courts do not award punitive damages in contract cases; rather, those are more appropriate in tort law cases. However, there are exceptions; for example, in cases involving fraud a court may approve punitive damages because a party who commits fraud has attempted to undermine the entire contract system.

Courts Typically Award Punitive Damages in Breach of Contract Cases