Valerie contracted with Timothy to sell her shares of stock to him for $500 even though she knew the company was about to go bankrupt and the stock was worth $5. If a court wanted to punish Valerie for her actions they would assess ________ damages.

A) consequential
B) punitive
C) liquidated
D) nominal
E) repugnant

Punitive Damages

Monetary compensation awarded to an injured party that exceeds simple compensation and is intended to punish the defendant.

Consequential Damages

Refer to indirect damages resulting from a breach of contract, not caused directly by the breach but instead by the subsequent consequences of that breach.

Liquidated Damages

A provision in a contract that specifies a predetermined amount of money that must be paid as damages in the event of a breach by one of the parties.