Question Scenario
Give the circumstances as to when “Vindictive or Exemplary Damages” may be awarded for breach of a contract.
Give the circumstances as to when “Vindictive or Exemplary Damages” may be awarded for breach of a contract.
Vindicative or Exemplary damages
These damages may be awarded only in two cases:
(a) for breach of promise to marry because it causes injury to his or her feelings; and
(b) for wrongful dishonour by a banker of his customer’s cheque because in this case the injury due to wrongful dishonour to the drawer of cheque is so heavy that it causes loss of credit and reputation to him.
A business man whose credit has suffered will get exemplary damages even if he has sustained no pecuniary loss. But a non-trader cannot get heavy damages in the like circumstances, unless the damages are alleged and proved as special damages. (Gibbons v West Minister Bank)
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When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.
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