Question

The type of damages awarded in the law of torts

• A. Liquidated Damages
• B. Unliquidated damages
• C. Penal damages
• D. Exemplary damages

Hint:

Associate \textbf{Liquidated Damages} with \textbf{Contracts} (pre-decided amount) and \textbf{Unliquidated Damages} with \textbf{Torts} (court-decided amount).

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
In law, 'damages' refer to a monetary compensation awarded to a claimant for loss or injury. The type of damages awarded depends on the nature of the legal wrong. A key distinction is made between liquidated and unliquidated damages.
Step 2: Detailed Explanation:
- Liquidated Damages: These are damages where the amount of compensation is pre-determined and agreed upon by the parties in a contract, to be paid in the event of a breach. This is a characteristic feature of the Law of Contracts.
- Unliquidated Damages: These are damages where the amount of compensation is not pre-determined. The court assesses the loss suffered by the plaintiff and decides the amount to be awarded. The law of torts deals with civil wrongs where there is usually no prior agreement between the parties. Therefore, when a tort is committed, the court determines the appropriate compensation based on the harm caused. This is the essence of unliquidated damages.
- Penal and Exemplary Damages (Punitive Damages): These are sub-types of damages, often awarded in tort cases. Exemplary or punitive damages are awarded not just to compensate the plaintiff but also to punish the defendant for outrageous conduct and to deter similar conduct in the future. While these can be awarded in torts, the most fundamental and defining characteristic of damages in tort law is that they are 'unliquidated'.
Step 3: Final Answer:
The primary and most encompassing classification for damages in tort law is unliquidated damages, as the amount is decided by the court post the commission of the tort.