Damages in Contract Law

Damages in contract law refer to the financial compensation awarded to a party when the other party fails to fulfill their contractual obligations. The aim is to put the injured party in the position they would have been in if the contract had been properly fulfilled. Damages can be categorized as compensatory (covering actual losses), consequential (covering secondary losses), punitive (penalizing wrongful conduct), or nominal (recognizing a breach without significant loss). Ultimately, damages seek to remedy harm caused by a breach while promoting fairness and accountability in contractual relationships.