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Damages

What Does Punitive Damages Mean?

Damages intended mainly to punish especially wrongful conduct.

Example in a contract

The parties waive claims for punitive damages.

01

Simple definition

Damages intended mainly to punish especially wrongful conduct.

02

What punitive damages means in a contract

This term commonly appears in remedies or limitation-of-liability sections describing the types or amounts of loss that may be claimed.

03

Why it may matter

The wording can affect the financial consequences of breach and may interact with exclusions, caps, or pre-agreed remedies. Review the exact language rather than relying on the label alone.

Related legal terms
consequential damagesIndirect losses that result from an event rather than from the immediate harm itself.incidental damagesSecondary expenses or losses arising from a breach or harmful event.liquidated damagesA pre-agreed amount payable if a specified breach or delay occurs.
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FAQ

Questions about punitive damages.

What does punitive damages mean in plain English?+

Damages intended mainly to punish especially wrongful conduct.

Where might punitive damages appear in a contract?+

This term commonly appears in remedies or limitation-of-liability sections describing the types or amounts of loss that may be claimed.

Is this definition legal advice?+

No. ClauseInsight provides concise informational explanations. The legal effect of a term depends on the complete document, facts, and applicable law.