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Simple English definitions for legal terms
interest as damages
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A quick definition of interest as damages:
Interest as damages refers to the amount of money that a person may be awarded as compensation for the loss of use of their money. This means that if someone owes you money and they don't pay you back, you may be entitled to receive interest on that money as part of your compensation. Interest is the extra money that you earn when you put your money in a bank account or invest it somewhere. So, if someone owes you money and they don't pay you back, you can ask the court to award you interest as part of your compensation for the loss of use of your money.
A more thorough explanation:
Definition: Interest as damages refers to the amount of money awarded to a party as compensation for the loss of use of their money or property. It is a form of compensation for the time value of money.
For example, if a person is owed money and the debtor fails to pay on time, the creditor may be awarded interest as damages for the delay in payment. This compensates the creditor for the loss of use of their money during the time it was not paid.
Another example is in a personal injury case where the plaintiff may be awarded interest as damages for the time it took to receive compensation for their injuries. This compensates the plaintiff for the delay in receiving the compensation they were entitled to.
Overall, interest as damages is a way to compensate a party for the loss of use of their money or property due to the actions or inactions of another party.