What term refers to damages that are not specified in the contract but are agreed upon by a court?

The term "unliquidated damages" refers to those damages that are not predetermined or specified in a contract and are instead determined by a court at the time of a dispute. In cases where a contract does not outline the amount of damages that would be due if one party breaches the agreement, the injured party must put forth evidence to show the extent of their losses. The court then assesses these losses to arrive at a fair and reasonable award, which is the essence of unliquidated damages.

Such damages can arise in various situations, including breaches of contract, tort claims, or other legal disputes where actual losses are difficult to quantify in advance. This contrasts with liquidated damages, which are agreed upon within the contract and established ahead of time, thus providing clarity for the parties involved.

Specific damages would typically denote damages that are precisely defined and quantified in a contract, while nominal damages refer to a small amount awarded to signify a legal wrong occurred, even if no actual damages or loss has been proven. The understanding of these terms is crucial for accurately addressing disputes in real estate transactions and other contracts, highlighting the significance of clearly defined agreements.