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Simple English definitions for legal terms
actual loss
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A quick definition of actual loss:
Actual loss is when something valuable is lost or damaged unexpectedly. For example, if you buy a toy and it breaks, that's an actual loss. If you have insurance, the insurance company will pay you for the loss. If you sell something for less than you paid for it, that's also an actual loss. The amount of the loss is the difference between what you paid and what you sold it for.
A more thorough explanation:
Actual loss refers to an undesirable outcome of a risk that results in the disappearance or reduction of value, usually in an unexpected or unpredictable way. It can be calculated by determining the difference between the original cost of something and its later selling price.
Examples of actual loss include:
- A car being totaled in an accident, resulting in a decrease in its value
- A property being damaged by a natural disaster, causing financial detriment to the owner
- A person losing possession of their phone, resulting in the loss of its value
These examples illustrate how actual loss can occur in various situations and result in financial harm to individuals or entities.