Which term describes damages that punish wrongdoing?

• A. Damages for actual loss
• B. Damages for emotional distress
• C. Nominal damages
• D. Punitive damages

Answer: (D)

Punitive damages are awards meant to punish wrongdoing and deter others from similar conduct. They aren’t about making the plaintiff whole for losses; instead, they sanction the defendant for egregious behavior, such as malice, fraud, or extreme recklessness. This distinguishes them from actual damages, which cover proven financial losses, and emotional distress damages, which compensate for suffering. Nominal damages are symbolic and typically awarded when a rights violation occurred but no substantial loss was proven. Because punitive damages target punishment and deterrence, they are the best fit for describing damages that punish wrongdoing.