What term describes a money award equivalent to the actual value of injuries or damages sustained by the aggrieved party?

The term that describes a money award equivalent to the actual value of injuries or damages sustained by the aggrieved party is known as compensatory damages. These damages are intended to compensate the injured party for their loss, covering expenses such as medical bills, lost wages, and pain and suffering that directly result from the incident. The goal is to restore the victim to the financial position they were in prior to the injury or damage occurred.

Compensatory damages are fundamental in legal proceedings as they provide a tangible measure of the harm suffered, ensuring that the aggrieved party receives a fair monetary award directly correlated to their actual losses. This concept reinforces the principle of making a party whole again after a loss.

The other terms presented do not align with this definition. Punitive damages, for instance, are awarded not to compensate the victim for actual losses but to punish the wrongdoer and deter future misconduct. Sparse damages is not a recognized legal term related to this context, and nominal damages typically refer to a small sum awarded to recognize that a legal wrong occurred, even if there was no substantial loss. Therefore, the most appropriate term for the money awarded based on the actual value of injuries or damages is indeed compensatory damages.