Liquidated damages are awarded to parties who have experienced an injury to their legal rights but have no actual loss.

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Liquidated damages are typically awarded when there is a breach of contract and the parties have agreed in advance to a specific amount of damages that will be paid in the event of a breach. Therefore, liquidated damages are awarded when there is an actual loss, not just an injury to legal rights.

Liquidated Damages Are Awarded to Parties Who Have Experienced an Injury