Take the case of Stormy Daniels, the porn actress who says she had an affair with Trump in 2006. Contract law is pragmatic: It permits actual damages for breach, but not punishment. However, and crucially, the set amount must be a reasonable forecast of the anticipated or actual harm from a breach. It is far from clear that Trump would suffer significant actual damages from Daniels' un-muzzling. Daniels pays, at most, reasonable damages.
Source: CNN March 25, 2018 18:11 UTC