Vindictive or Exemplary damages Sample Clauses
The Vindictive or Exemplary Damages clause limits or excludes the ability of a party to claim damages that are intended to punish the other party, rather than to compensate for actual loss. In practice, this means that if a dispute arises, neither party can seek punitive damages or damages awarded as a deterrent, focusing instead on compensation for direct losses. This clause serves to reduce uncertainty and potential financial exposure by ensuring that only compensatory damages are recoverable, thereby preventing disproportionate or unpredictable awards.
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Vindictive or Exemplary damages. Damages for the breach of a contract are given by way of compensation for loss suffered, and not by way of punishement for wrong inflicted. Hence vindictive or exemplary’ damages have no place in the law of contract because they are punitive involving punishment by nature. But in case of (a) breach of a promise to marry and the dishonor of a cheque by a banker wrongfully when he possesses sufficient funds by the credit of the customer, the Court may award exemplary damages.