On The Punitive Damages

Punitive damage originated from the common law, parallel to compensatory damage. It serves multiple purposes, including compensation for losses suffered by an injured party and punishing and preventing illegal acts. Comparison with compensatory damage which civil law countries pursue , punitive damage is distinctive. The main aim of this system is to punish the actor, not to compensate the losses. Punitive Damages have three functions including: deterrence, punishment and compensation. But Compensatory Damages only has the function of compensation. The negative effect of punitive damage should be given attention. This system has some conflicts with the theory of private law, and there are some difficulties during its implication. In fact, punitive damage is the most controversial system over the world. Our society is going through the period of transformation, the conflictions in our society are intense. We should applied Punitive Damages within the specific limits. Along with our country civil code drafting, many people began to pay close attention to this system. We should apply punitive damage in tort liability and in contract liability, and the scope of punitive damage can be enlarged. In torts, if a man beats another man but his act is not serious enough to constitute a crime punitive damages should be awarded. In the sphere of contract liability, it is mainly applied in cases as specified in Article 49 of the Consumer Protection Law. After analyzing the concept, the function ,history and rationality of the punitive damage , this article give some legislative advises about punitive damage.