Question

selma is suing william for fraud that induced her to enter into a contract with him. william sold selma worthless stocks that he falsely and intentionally claimed were very valuable. in attempting to punish william for his fraudulent misrepresentation, selma will seek _______ damages.

multiple choice

○ compensatory

○ nominal

○ liquidated

○ consequential

○ punitive

Explanation:

To determine the correct type of damages, we analyze each option:

• Compensatory: Aims to compensate for losses, not punish.
• Nominal: Awarded for technical breaches, small amount, no punishment.
• Liquidated: Pre - agreed in contracts, not for punishment.
• Consequential: Cover indirect losses from breach, not punitive.
• Punitive: Intended to punish the wrongdoer for intentional/fraudulent conduct, which matches Selma’s goal to punish William for fraud.

Answer:

E. punitive