What type of damages pay over and above the actual loss?

• A. punitive
• B. compensatory
• C. nominal
• D. liquidated

Answer: (A)

Punitive damages are designed to punish the wrongdoer and deter similar conduct, and they go beyond simply reimbursing the plaintiff for actual losses. They aren’t about making the plaintiff whole; instead, they aim to punish particularly egregious behavior, such as malice, oppression, or fraud, and to deter others from similar conduct in the future. In contrast, compensatory damages cover the actual losses—medical bills, lost wages, repair costs, etc.—and nominal damages are a token amount awarded when a wrong occurred but no real loss was shown. Liquidated damages are pre-agreed sums in a contract, meant to estimate potential losses in advance rather than punish wrongdoing. So, for damages that exceed the actual loss to punish or deter, punitive damages are the appropriate concept.