What term refers to money awarded to a plaintiff in payment for his or her actual losses?

• A. Compensatory Damages
• B. Punitive Damages
• C. Nominal Damages
• D. Contract

Answer: (A)

Compensatory damages are money awarded to compensate for a plaintiff’s actual losses. They’re intended to restore the plaintiff to the financial position they were in before the harm, covering both economic costs (like medical bills and lost wages) and non-economic harms (such as pain and suffering). This is different from punitive damages, which aim to punish the defendant beyond the amount of actual loss to deter wrongdoing. Nominal damages are symbolic amounts awarded when a violation occurred but the plaintiff didn’t prove substantial actual losses. The term “contract” isn’t a damages category; it refers to an agreement, not an award of damages.