Which damages are awarded to punish a defendant for reckless, malicious, or deceitful conduct to deter similar acts?

• A. Compensatory damages
• B. Extracontractual damages
• C. Punitive damages (exemplary damages)
• D. Bad faith (outrage)

Answer: (C)

Punitive damages, sometimes called exemplary damages, are awarded to punish a defendant for reckless, malicious, or deceitful conduct and to deter similar acts in the future. They don’t aim to compensate the plaintiff for actual losses; instead, they sanction the wrongdoer and serve as a deterrent. These damages are typically reserved for particularly egregious behavior—such as conscious disregard for safety, fraudulent schemes, or intentional harm—and may be subject to legal standards, caps, and due-process constraints. By contrast, compensatory damages reimburse actual losses like medical bills and lost wages, and other categories (such as damages outside a contract or claims involving bad faith or outrage) address different remedies and theories.