Assertion: As a general rule, vindictive or exemplary damages of tort ...
The Assertions talks that in breach of contract only nominal damages are given and not Vindicative or Exemplare i.e revenge or to set an example type of damages are awarded
The reason tells that it is because a breach of contract doesn't give damages as punishments
Assertion: As a general rule, vindictive or exemplary damages of tort ...
Assertion: As a general rule, vindictive or exemplary damages of tort are unknown in contract.
Reason: The award of damages in case of breach of a contract is made not as a punishment for wrong.
The correct answer is option 'A'. Both the assertion and reason are true, and the reason is the correct explanation of the assertion.
Explanation:
Understanding the Assertion:
The assertion states that vindictive or exemplary damages of tort are unknown in contract. This means that in contract law, the concept of awarding vindictive or exemplary damages is not recognized or applied.
Understanding the Reason:
The reason provided is that the award of damages in case of breach of a contract is made not as a punishment for wrong. This means that when a contract is breached, the purpose of awarding damages is not to punish the party at fault, but rather to compensate the non-breaching party for the loss or harm suffered as a result of the breach.
Explanation of the Assertion and Reason:
In contract law, the primary objective of awarding damages is to compensate the aggrieved party for the loss or harm suffered due to the breach of contract. The aim is to put the non-breaching party in the position they would have been in if the contract had been performed as agreed. Unlike tort law, where punitive or exemplary damages may be awarded to punish the wrongdoer and deter others from similar conduct, contract law focuses on compensatory damages.
While contract law recognizes and allows for various types of damages such as general damages, special damages, and nominal damages, the concept of vindictive or exemplary damages is generally not applicable in contract disputes. The purpose of damages in contract law is not to punish the breaching party, but rather to restore the non-breaching party to the position they would have been in if the contract had been fulfilled.
Conclusion:
In conclusion, the assertion that vindictive or exemplary damages of tort are unknown in contract is true. The reason provided, which states that the award of damages in case of breach of a contract is made not as a punishment for wrong, is the correct explanation for this assertion.
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