Which type of damages is awarded strictly as a punitive measure?

The correct answer is punitive damages, which are specifically intended to punish a wrongdoer and deter similar conduct in the future. Unlike compensatory damages, which aim to compensate the injured party for actual losses suffered, punitive damages go beyond mere compensation. They are awarded in cases where the defendant's behavior is found to be particularly egregious, willful, or reckless, essentially highlighting the wrongdoing's severity and society's condemnation of such behavior.

Compensatory, nominal, and actual damages serve to address the financial and material losses sustained by a plaintiff rather than to impose penalties on the defendant. Compensatory damages are meant to cover actual losses and restore the victim's situation to what it was before the harm. Nominal damages are small amounts awarded when a legal wrong has occurred, but no actual damage was proven. Actual damages typically refer to the real losses incurred. Therefore, punitive damages are uniquely characterized by their role in punishment and deterrence, distinguishing them from other types of damages awarded in contract law.