damages

Damages are a legal remedy consisting of monetary compensation awarded to a party who has suffered harm due to another's conduct. In civil and commercial disputes, damages can compensate for harm to persons, property, or economic interests, and may be awarded to restore the injured party to the position they would have occupied absent the wrong. In contract cases, damages are generally intended to place the non-breaching party in the financial position they would have been in if the contract had been performed, though other remedies such as specific performance or injunction may be available.

Common categories include compensatory damages, which reimburse actual losses; general damages for non-economic harms such as pain, suffering, or loss of reputation; and special or economic damages for specific monetary losses such as medical expenses, lost wages, or repair costs. Consequential or incidental damages cover secondary losses caused by the breach. Nominal damages are small awards when a legal wrong is established but no substantial loss is proven. Punitive or exemplary damages punish particularly egregious conduct and deter similar behavior, but are not available in all cases or jurisdictions. Liquidated damages are fixed sums agreed in a contract as the amount payable on breach; they must be reasonable and not a penalty to be enforceable.

Damages require proof of duty, breach, causation, and actual loss. Causation includes both factual cause and foreseeability (proximate cause). The claimant typically has a duty to mitigate damages by taking reasonable steps to reduce losses. Limits may apply: statutes of limitations govern when a claim must be filed, and some jurisdictions cap damages or exclude certain categories. The standard of proof for civil damages is usually a preponderance of the evidence, with higher standards in some contexts.