Think of a contract as a private set of laws that only apply to the two parties who signed it. Those two parties have determined and agreed to the subject, consideration, timing, duration, etc. for the contract. Generally, the court does not interfere with the parties’ agreement, except in certain circumstances (e.g. if the subject of the contract violates public policy). When a contract is breached and a lawsuit is filed, the court will generally award compensatory damages that make the non-breaching party “whole” again, as if the breach didn’t happen. The court rarely awards punitive damages that are designed to punish the breaching party.

Do you think punitive damages should be awarded in breach of contract cases? If so, discuss why and under what circumstances. If not, discuss why not, even under circumstances including fraud or malice.

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The question of whether punitive damages should be awarded in breach of contract cases is a complex one with strong arguments on both sidesHeres an an... View the full answer