What term describes damages awarded to an injured party in a contract for the exact amount of loss?

The term that describes damages awarded to an injured party in a contract for the exact amount of loss is compensatory damages. These damages are intended to compensate the injured party fully for their losses, placing them in the position they would have been in if the contract had been fulfilled as agreed. The focus of compensatory damages is on actual losses which can include direct costs or losses incurred due to the breach of contract.

In a legal context, compensatory damages specifically aim to make the injured party whole again, covering both tangible losses (like lost profits) and intangible losses (like distress or suffering related to the breach). This principle ensures that the injured party is compensated based on their actual experienced losses, which correlates directly to the harm they have suffered.

Other damage types, like liquidated damages, refer to pre-agreed amounts outlined in the contract, punitive damages are designed to punish the wrongdoer and deter future misconduct, and consequential damages are related to foreseeable damages that result from a breach but go beyond the direct losses. Thus, compensatory damages stand out as the type explicitly focused on the actual loss incurred by the injured party.