What is the primary purpose of nominal damages awarded in a breach of contract case?

Nominal damages are awarded in cases of breach of contract primarily to recognize that a legal wrong has occurred, even when there is no significant financial loss to quantify. This award serves to affirm the rights of the non-breaching party and signifies that the breaching party's actions were wrongful. By providing nominal damages, the court acknowledges the breach without needing to establish the extent of actual damages suffered.

This type of award can also have implications for future actions related to the contract, as it sets a precedent that the breaching party failed to meet their obligations. It is not primarily focused on compensating actual losses or punishing the breaching party, which distinguishes it from other types of damages, such as compensatory or punitive damages.