Which term refers to an award paid to the injured party for their losses?

The term that denotes an award provided to the injured party to compensate for their losses is compensatory damages. This type of damage is designed to make the injured party "whole" again by covering the actual losses they incurred due to another's wrongful actions. It encompasses various forms of losses, including medical expenses, lost wages, and pain and suffering, ensuring that the plaintiff receives an amount that reflects the true impact of the harm experienced.

In contrast, punitive damages aim to punish the wrongdoer and deter similar conduct in the future, rather than to compensate the victim for their specific losses. Nominal damages are awarded when a legal wrong has occurred, but the injured party has not suffered any measurable loss. Liquidated damages refer to a predetermined amount agreed upon in a contract that a party must pay if they breach that contract. Thus, compensatory damages specifically address the need to financially restore the injured party, making it the most accurate answer in this context.