What is the primary function of 'Vindictive Damages' in legal terms?

Vindictive damages, often referred to as punitive damages, serve a primary function of penalizing the party that has breached a contract or has committed a wrongful act. Unlike compensatory damages, which aim to reimburse the claimant for actual losses incurred, vindictive damages are intended to punish the wrongdoer and deter similar conduct in the future. The rationale behind this type of damage is to send a strong message that certain behaviors, particularly those that are malicious or egregious, will not be tolerated by the legal system.

The goal of these damages is not merely to compensate the victim, but to emphasize that the defendant's actions were grossly negligent or intentional harm. Thus, awarding vindictive damages provides a dual benefit: it addresses the specific case at hand while also promoting overall compliance with legal standards.

The choices that indicate covering basic losses, setting damages at a predefined amount, or providing specific compensation for incurred costs do not align with the purpose of vindictive damages, which is focused on punishment rather than mere compensation or calculation of losses.