What are the Five Kinds of Damages?
When a person is wronged or injured by another, they may be able to receive compensation for their losses. The amount of compensation they receive depends on the type of damages they are able to prove. There are five important types of damages that might be available, depending on your situation: compensatory damages, specific performance, an injunction, liquidated damages, or rescission.
Compensatory damages are the most common type of damages. They are designed to make the injured party “whole” again by providing them with a monetary award that is equal to the amount of their losses. Compensatory damages can include medical bills, lost wages, and pain and suffering.
Specific performance is a type of damages that is used when money is not enough to make the injured party whole. This type of damages requires the wrongdoer to take a specific action to make up for their wrongdoing. For example, if a contractor fails to complete a job, the court may order them to finish the job as a form of damages.
An injunction is a type of damages that requires the wrongdoer to stop doing something. This type of damages is often used when the wrongdoer is engaging in an activity that is causing harm to the injured party. For example, if a neighbor is making too much noise, the court may issue an injunction ordering them to stop.
Liquidated damages are damages that are set out in a contract. This type of damages is designed to provide the injured party with a predetermined amount of compensation if the wrongdoer breaches the contract. This type of damages is often used in business contracts.
Finally, rescission is a type of damages that is used to undo a contract. This type of damages is often used when one party has been tricked or misled into signing a contract. The court can order the contract to be rescinded, meaning that it is no longer valid.
These are the five types of damages that might be available in a legal dispute. Each type of damages is designed to provide the injured party with the compensation they deserve. It is important to speak to an experienced attorney to determine which type of damages might be available in your situation.
