What do unliquidated damages refer to in a legal context?

Unliquidated damages refer to compensation that is not predetermined or specified in a contract but rather is determined by the court based on the specifics of a case. This type of damage arises in situations where it is impossible to predict precisely what the loss will be. The court assesses the actual damages suffered due to the breach of contract or wrongful act at the time of the judgment.

In contrast to liquidated damages, which are set out in a contract as a fixed sum to be paid in the event of a breach, unliquidated damages require a judicial assessment of the harm caused to the aggrieved party. The existence of such damages means that they can vary widely depending on the circumstances, such as the severity of the breach and its impact on the injured party.

Other options convey fixed or predetermined compensations, non-economic damages only, or mutual agreements by parties, which do not align with the nature of unliquidated damages.