Which damages are a token sum awarded when liability has been found but monetary damages cannot be shown?

• A. Punitive Damages
• B. Compensatory Damages
• C. Nominal Damages
• D. Affirmative Defense

Answer: (C)

Nominal damages are a token amount awarded when liability is established but there’s no demonstrable actual loss. They serve to recognize that a legal wrong occurred and to vindicate the plaintiff’s rights, even though no monetary harm was proven. A small amount—often $1 or another symbolic figure—reflects the finding of liability without compensating for damages. This differs from compensatory damages, which reimburse actual losses, and from punitive damages, which punish especially egregious conduct. An affirmative defense is not a damages award at all; it’s a legal position used to avoid liability.