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A breach of contract is established, but the claimant proves no actual loss. What is a token award…

Nominal damages are a token award recognizing an established breach when no actual loss is proved. Difficulty in measuring a loss that has occurred raises a separate…

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A breach of contract is established, but the claimant proves no actual loss. What is a token award recognizing the breach called?

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Answer and explanation

Correct answer D

Nominal damages are a token award recognizing an established breach when no actual loss is proved. Difficulty in measuring a loss that has occurred raises a separate question about assessing compensation. Section 74 may permit use of a genuine pre-estimate where a sum is stipulated and actual loss is difficult or impossible to prove.

Option feedback

Option A

Actual or compensatory damages address loss caused by the breach.

Option B

A stipulated sum raises the question of reasonable compensation under section 74. It is distinct from a token award.

Option C

Exemplary damages serve a punitive purpose. The token award here recognizes the breach.

Option D

Nominal damages recognize the breach where no actual loss is proved.

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