A description on the use of the predicative dative.

Please discuss what the predicative dative is and when is it used?

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... rather than a nominative. This happens when "esse" means "acts as", "functions as"; "serves as", rather than just "is". This dative is known as the predicative dative. The difference is subtle and can be seen in the following two sentences:
He is happy.
He is a source of happiness.

In the first sentence, "happy" is a complement and is in the nominative case. In the second sentence, "is" carries the sense of "acts as"/ "functions as" and so "source" is a predicative dative and is in the dative case. (NB "of happiness" is still genitive, dependent on "source"; it does not become dative.)
Another example:
Chocolate is ...