Damages may be aggravated by the circumstances of the wrong. Damages may be classified as unliquidated or liquidated. Liquidated damages are a sum fixed in advance by the parties to a contract as the amount to be paid in the event of a breach. They are recoverable provided that the sum fixed was a fair pre-estimate of the likely consequences of a breach, but not if they were imposed as a penalty .
Unliquidated damages are damages the amount of which is fixed by the court.
Damages may also be classified as general and special damages . The purpose of damages in tort is to put the plaintiff in the position he would have been in if the tort had not been committed. Recovery is limited by the rules of remoteness of damage . The plaintiff must take reasonable steps to mitigate his losses and so may be expected to undergo medical treatment for his injuries or to seek alternative employment if his injuries prevent him from doing his former job. Damages may also be reduced for the plaintiff's contributory negligence .