What type of damages are sought to refund losses suffered by a party?

The type of damages sought to refund losses suffered by a party is known as compensatory damages. These damages are intended to compensate the injured party for actual losses incurred due to the actions of another party. They are designed to restore the injured party to the position they would have been in had the harm not occurred.

Compensatory damages can cover various types of losses, including economic losses, such as medical expenses and lost wages, as well as non-economic losses, such as pain and suffering. This reflects a fundamental principle in tort law and contract law, where the goal is to make the injured party whole again.

Liquidated damages, on the other hand, are a predetermined amount of money that parties agree upon during contract formation, intended to provide certainty in breach of contract scenarios, rather than to compensate for actual losses. Special damages refer specifically to quantifiable monetary losses that can be itemized, while punitive damages are intended to punish the wrongdoer and deter future wrongdoing, rather than to compensate the victim for their losses. Thus, the focus of compensatory damages is directly aligned with refunding losses, making it the correct answer.