What type of damages is awarded to punish the wrongdoer and deter future misconduct?

The correct answer is punitive damages because these are specifically designed to punish the wrongdoer for their actions and to deter similar conduct in the future. Unlike compensatory damages, which are intended to reimburse a victim for the actual harm suffered, punitive damages go above and beyond mere compensation. They serve a broader purpose within the legal system by addressing actions that are deemed excessively harmful, reckless, or fraudulent. By imposing punitive damages, the legal system aims to discourage not only the wrongdoer but also others within society from engaging in similar behavior.

In contrast, compensatory damages focus on the financial restoration of the injured party's losses, actual damages pertain to the real and measurable losses incurred, and incidental damages cover any additional losses resulting directly from the breach or wrong. While all these types of damages play significant roles in civil law, only punitive damages fulfill the specific goal of punishing wrongdoing and deterring future misconduct.