Question

For a tort, damages are __________ in nature.

• A. liquidated
• B. unliquidated
• C. nominal
• D. exemplary

Hint:

"Liquidated" damages are for breach of contract (amount is pre-fixed). "Unliquidated" damages are for torts (amount is decided by the court).

Answer 1

The Correct Option is B

Step 1: Define "Tort" and "Damages". A tort is a civil wrong that causes someone else to suffer loss or harm, resulting in legal liability for the person who commits the tortious act (e.g., negligence, defamation, trespass). Damages refer to the monetary compensation awarded to the injured party.

Step 2: Understand the difference between "Liquidated" and "Unliquidated" damages. (\) Liquidated Damages: This is a specific, pre-determined amount of money that parties to a \textit{contract} agree to pay in case of a breach. The amount is fixed in the contract itself. (]) Unliquidated Damages: This is an amount of money that is \textit{not} pre-determined. In a tort case, since there is no prior contract, the amount of harm is not pre-agreed. The court must assess the victim's loss and decide on a suitable monetary compensation.

Step 3: Apply the concept to torts. Since a tort is a wrong independent of any contract, the amount of compensation is not fixed beforehand. It is determined by the court based on the facts of the case. Therefore, damages in tort are always unliquidated.