Final answer:
Incidental damages are awarded to a plaintiff in a breach of contract action who has suffered no actual damage. These damages serve to illustrate the wrongfulness of the breach. They compensate the plaintiff for additional costs or expenses incurred as a result of the breach.
Step-by-step explanation:
In a breach of contract action, the plaintiff who has suffered no actual damage may be entitled to an insignificant sum to illustrate the wrongfulness of the breach. These damages are known as incidental damages. Incidental damages are awarded to compensate the plaintiff for any additional costs or expenses that were incurred as a result of the breach but do not involve actual harm or loss.
For example, if a contractor breaches a contract to build a house, and the homeowner is unable to find another contractor within a reasonable timeframe, the homeowner may be entitled to incidental damages for any additional costs incurred in finding a new contractor, such as advertising for bids or paying a higher price.
It is important to note that incidental damages are distinct from consequential damages, which are awarded to compensate the plaintiff for losses or harm that are caused as a result of the breach but are not directly stated in the contract.