Actual Damages Law and Legal Definition

Compensation paid for harm, loss or injury suffered by an aggrieved party due to an act or a failure to act by other party/parties. Actual damages are real damages and are also called compensatory damages. Actual damages can be measured. For example, ‘A’ suffers loss of income/wages due to injuries that resulted in A’s unemployment. Medical expenses and specific losses due to breach of contract Amount awarded is according to the real harm, loss or injury sustained by an aggrieved party that can readily be proven. Such compensation does not include nominal or punitive damages.