Nominal damages Clause Samples
The nominal damages clause establishes that, in the event of a breach of contract where no substantial loss can be proven, a party may still be awarded a small, symbolic sum as recognition of the breach. This clause typically applies when a technical violation occurs but the non-breaching party cannot demonstrate actual financial harm; for example, a court might award a token amount such as one dollar. Its core practical function is to affirm that a breach has occurred, even in the absence of measurable damages, thereby upholding the integrity of the contract and providing a legal remedy for minor or technical breaches.
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Nominal damages. Where the injured party has not in fact suffered any loss by reason of the breach of a contract, the damages recoverable by him are nominal. These damages mere acknowledge that the plaintiff has proved his case and won. Example: A firm consisting of four partners employed B for a period of two years. After six months two partners rebred the business being carried on by the other two B declined to be employed under the continuing partners. Held, he was only entitled to nominal damages as he had suffered no loss.