As per Lawkidunya, Nominal Damages are awarded when the plaintiff is legally in the right, but has not suffered substantial losses, an example of nominal damages is a situation where a defendant breached a contract and failed to fulfill the terms of the agreement, but the plaintiff wasn’t harmed by this failure.
What is Nominal Damages in Breach of Contract
If a party to a contract files a suit for losses but proves that while there has been a breach of contract, he has not suffered any real losses, then compensation for nominal damages is awarded. This is done to establish the right to a decree for a breach of contract.
Difference Between Incidental and Nominal Damages
Compensatory damages compensate for the special loss suffered; consequential damages compensate for the foreseeable consequences of the breach; incidental damages compensate for the costs of keeping any more damages from occurring; nominal damages are awarded if the actual amount cannot be shown or there are no actual.