# Actual Damages Agreement
**This Actual Damages Agreement (“Agreement”) is made and entered into as of [Date], by and between:**
**[Party A Name]**
[Party A Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]
**AND**
**[Party B Name]**
[Party B Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]
**Collectively referred to as the “Parties.”**
## 1. Recitals
WHEREAS, the Parties wish to set forth the terms under which Party B shall make amends for actual damages incurred by Party A as a result of [describe the event or circumstances giving rise to the damages];
WHEREAS, the Parties desire to resolve the matter amicably and without further dispute or litigation;
NOW, THEREFORE, in consideration of the above premises and the covenants and agreements contained herein, the Parties agree as follows:
## 2. Damages
2.1 **Definition of Actual Damages**
"Actual Damages" shall mean the total amount of economic loss suffered by Party A, including but not limited to:
- [List specific types of damages, e.g., loss of earnings, repair costs, replacement costs, medical expenses, etc.]
2.2 **Amount of Damages**
Party B agrees to pay Party A the total sum of $[insert amount] as compensation for Actual Damages incurred.
## 3. Payment Terms
3.1 **Payment Due Date**
Payment shall be made in full by Party B on or before [insert due date].
3.2 **Method of Payment**
Payments shall be made via [insert method, e.g., wire transfer, check, etc.] to the following account or address:
[Insert payment instructions or further details]
## 4. Release of Claims
Upon receipt of the payment described in Section 3, Party A hereby releases and discharges Party B from any and all claims, demands, actions, and causes of action that arose out of or are in any way related to the Actual Damages associated with [specific events or circumstances].
## 5. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [insert state].
## 6. Entire Agreement
This Agreement constitutes the entire agreement between the Parties regarding its subject matter and supersedes all prior agreements, understandings, or representations between the Parties.
## 7. Amendments
This Agreement may not be amended or modified except in writing signed by both Parties.
## 8. Signatures
IN WITNESS WHEREOF, the Parties hereto have executed this Actual Damages Agreement as of the date first above written.
**[Party A Name]**
Signature: ___________________________
Name: [Printed Name]
Date: [Date]
**[Party B Name]**
Signature: ___________________________
Name: [Printed Name]
Date: [Date]
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**Note:** Ensure both parties review the contract carefully and consult with a legal professional if necessary before signing.