Contracts & Disputes

Damages

In plain English

A sum of money a court orders one party to pay another to compensate for loss or harm.

What it means

Damages are monetary compensation awarded to put the wronged party, as far as money can, in the position they would have been in had the wrong not occurred. In contract cases, damages usually compensate for the loss caused by the breach. The claimant generally must prove their loss and take reasonable steps to minimise it (a duty to "mitigate"). Damages are different from a debt, which is a fixed sum already owed.

How it's used

The court awarded $8,000 in damages to cover the extra amount the homeowner had to pay another builder to finish the job.

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