What type of damages might be awarded to punish a breaching party beyond compensation for loss?

The correct choice is punitive damages, which are specifically designed to go beyond mere compensation for losses suffered by the non-breaching party. Instead of focusing solely on making the injured party whole through financial compensation for actual losses—such as compensatory damages—punitive damages are intended to punish the breaching party for particularly egregious or wrongful behavior and to deter similar conduct in the future.

Punitive damages serve a broader purpose in the legal system by addressing actions deemed to be especially harmful or malicious. They send a strong message that certain behaviors will not be tolerated and encourage compliance with legal and ethical standards.

In contrast, compensatory damages are focused on reimbursement for direct losses incurred, while consequential damages relate specifically to losses that occur as a direct result of the breach but may not have been immediately apparent. Contractual damages is a more general term that can encompass various types of damages awarded under a contract but doesn't specifically refer to the punitive aspect that punitive damages embody. Thus, punitive damages are distinct because their primary function is to impose punishment rather than just to compensate for loss.