Editing Contracts/Punitive damages
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'''Punitive damages''' are [[Contracts/Liquidated damages|liquidated damages]] which exceed reasonable [[compensatory damages]], making them invalid under common law. While liquidated damage clauses set a pre-agreed value on the expected loss to one party if the other party were to [[Breach of contract|breach]] the contract, punitive damages go further and seek to penalise the breaching party beyond the reasonable losses from the breach. Many clauses which are found to be punitive are expressed as liquidated damages clauses but have been seen by courts as excessive and thus invalid. | '''Punitive damages''' are [[Contracts/Liquidated damages|liquidated damages]] which exceed reasonable [[compensatory damages]], making them invalid under common law. While liquidated damage clauses set a pre-agreed value on the expected loss to one party if the other party were to [[Breach of contract|breach]] the contract, punitive damages go further and seek to penalise the breaching party beyond the reasonable losses from the breach. Many clauses which are found to be punitive are expressed as liquidated damages clauses but have been seen by courts as excessive and thus invalid. | ||