Which damages are awarded to recognize losses that were not financially quantifiable?

Nominal damages are awarded in situations where a legal wrong has occurred, but the plaintiff has not suffered a significant financial loss that can be quantified. This type of damage recognizes that a right was violated, even if the actual financial harm is minimal or difficult to measure. The purpose of nominal damages is to validate the plaintiff's claim and acknowledge the wrongdoing, rather than to provide compensation for specific monetary losses.

In contrast, punitive damages are intended to punish the wrongdoer and deter similar conduct in the future, typically in cases of severe wrongdoing, while incidental damages are related to costs incurred due to a breach of contract but are still quantifiable. Consequential damages, on the other hand, involve losses that are not directly linked to the initial transaction but arise as a consequence of a breach. Thus, the distinctive function of nominal damages is to assert a legal right and establish liability without needing to demonstrate substantial economic loss.