When the court is unable to assess damages, the aggrieved party may be awarded:
A. Nominal damages
B. Exemplary damages
C. Actual damages
D. Liquidated damages
Answer: Option A
Solution (By Examveda Team)
Damages in contract law refer to the monetary compensation awarded to the aggrieved party for the breach of contract by the other party. The goal is to put the aggrieved party in the position they would have been in had the contract been performed.Option A: Nominal Damages: These are awarded when a breach of contract has occurred, but the aggrieved party has suffered no actual financial loss. The amount awarded is usually small, symbolic, and primarily acknowledges that the other party was wrong. This is the correct answer in the scenario where the court cannot assess actual damages.
Option B: Exemplary Damages (Punitive Damages): These damages are awarded to punish the breaching party for their egregious conduct and deter similar behavior in the future. They are not intended to compensate the aggrieved party for their loss but rather to punish the wrongdoer. They are rarely awarded in breach of contract cases, typically only when the breach is accompanied by fraud, malice or other tortious conduct.
Option C: Actual Damages (Compensatory Damages): These damages aim to compensate the aggrieved party for the actual loss suffered due to the breach of contract. This is the most common type of damages awarded. If the court can assess the actual damages, they would award actual damages. The question, however, states the court *cannot* assess damages.
Option D: Liquidated Damages: These are damages whose amount is specified in the contract itself in the event of a breach. The amount must be a genuine pre-estimate of the likely loss, not a penalty. If the stipulated amount is considered a penalty by the court, it will not be enforced.
Therefore, when the court is unable to assess damages, nominal damages (Option A) are the appropriate remedy, as they acknowledge the breach of contract without requiring a precise calculation of the financial loss.
Iska exemplary damages hoga pr nominal damages kaise hua?