Final answer:
The purpose of damage awards in tort is to compensate for harm from wrongful conduct, aiming to make the injured party whole. In contract law, they aim to financially restore the party as if the contract had been fulfilled. For public officials, constitutional limits require showing 'actual malice' for defamation claims related to official conduct.
Step-by-step explanation:
Purpose of Damage Awards in Tort and Contract
The purpose of damage awards in tort law is to compensate the plaintiff for harm caused by the defendant's wrongful conduct. Compensation can be for physical injuries, emotional distress, lost wages, or property damage. The aim is to restore the injured party to the position they would have been in if the tort had not occurred. In contract law, damage awards are intended to put the aggrieved party in the position they would have been in had the contract been performed as agreed. This might include compensating for financial losses directly resulting from the breach, but not necessarily for consequential damages unless they were foreseeable and agreed upon within the contract.
In relation to public officials specifically, the constitutional guarantees impose limitations on recovering damages for defamatory falsehoods relating to their official conduct. Public figures must demonstrate that any defamatory statement was made with 'actual malice' in order to succeed in a defamation claim.