What type of damages is awarded as a small sum for a breach of contract without proof of loss?

Nominal damages are awarded in situations where a breach of contract has occurred, but the non-breaching party has not suffered any actual loss or harm that can be quantified. These damages serve to acknowledge that a legal wrong occurred, even if no substantial financial loss was incurred. The primary purpose is to affirm the right of the aggrieved party and uphold the principle that a breach of contract is an actionable offense, regardless of the financial impact on the aggrieved party.

In contrast, liquidated damages are specified within the contract itself as a predetermined sum to be paid in the event of a breach. Ordinary damages, often referred to as general damages, involve compensation for actual losses directly linked to the breach. Special damages refer to compensation for losses that are not a direct result of the breach but rather consequential losses that were foreseeable at the time the contract was made. Thus, the uniqueness of nominal damages lies in their role of recognizing a breach without quantifiable loss.