In this chapter, damages and their function are addressed. The author of this section, Václav Janeček, draws on the traditional conception of damages which claims that the main purpose of damages is compensation.
This he puts in contrast with the retributive liability concept, according to which in addition to compensation, punishing the wrongdoer is another purpose of damages. By detailed analysis of domestic judgements and an analysis of selected provisions of the NCC he infers that despite some theoretical scruples, the concept of punitive (exemplary) damages is present in the Czech legal system.
The author then points out and addresses the systematic and doctrinal challenges associated with introducing punitive damages. By means of a comparatively analytical method, he comes to a solution acknowledging the alternative function of damages, i.e. the rehabilitation (vindicatory) function.