What type of injury does "actual damages" refer to?

"Actual damages" refers to compensation for loss or injury suffered, which encompasses tangible and quantifiable losses that a person experiences due to another's actions or negligence. In legal terms, actual damages are designed to restore the injured party to the position they were in before the harm occurred. This can include medical expenses, lost wages, or other calculable financial losses resulting from the injury.

The concept applies broadly across various types of legal claims, including torts and contract breaches. Actual damages are distinct from other forms of damages such as punitive damages, which are intended to punish the wrongdoer, or non-economic damages, which address subjective harm, such as pain and suffering.

In this context, focusing on the compensation aspect makes it clear why this option accurately captures the nature of actual damages, as they are fundamentally about tangible losses that can be proven and quantified in monetary terms.