What are unliquidated damages?

Unliquidated damages refer to damages that are not predetermined or fixed in an agreement and typically require proof of actual loss to be quantified. This means that they are often assessed based on the actual harm or loss suffered by a party as a result of a breach of contract or wrongful act, rather than being established in advance.

In many legal contexts, unliquidated damages arise when the exact amount of loss is uncertain, necessitating a factual determination of the impact of the harmful conduct. This differs from liquidated damages, which are previously articulated amounts meant to cover potential breaches and do not necessitate proof of harm at the time of claiming.

Other options do not accurately describe unliquidated damages. Pre-determined damages refer to liquidated damages, which are specifically set forth in the contract and do not require further proof. Damages that do not require evidence of loss would also pertain to liquidated damages and not unliquidated ones. Compensatory damages that are agreed upon imply that both parties have consented to a specific sum, which again aligns with liquidated damages rather than unliquidated. Thus, the focus on the necessity of proving actual loss aligns directly with the concept of unliquidated damages.