Question

In a real estate transaction, damages awarded based upon fraud, negligent misrepresentation, or intentional misrepresentation whereby conduct is so bad or unconscionable that the court constructs a remedy designed to punish, are known as ____________ .

Answer 1

In real estate transactions, punitive damages are awarded for conduct involving fraud or misrepresentation that is considered particularly vile, with the intent to punish the wrongdoer.

Step-by-step explanation:

In a real estate transaction, damages awarded based on fraud, negligent misrepresentation, or intentional misrepresentation which is particularly egregious, leading the court to provide a remedy that also aims to punish, are known as punitive damages.

These are different from compensatory damages, which are intended to compensate the victim for the actual harm suffered. Punitive damages are awarded when the conduct in question is found to be highly reprehensible, typically involving malice or its equivalent, and are particularly relevant in cases where actual malice is proven as per the constitutional guarantees discussed in the context of defamatory falsehoods against public officials.