What do you mean by Damages

Question

What do you mean by Damages?

Answer 1

Damages are the most common remedy for breach of contract. The goal of damages in contract law is to place the injured party in the same position as if the contract had been completed. The purpose is not to punish the offending party, as it is in tort law.

To qualify, damages must be for losses that are reasonably foreseeable. The test is whether from past dealings between the parties and from the knowledge of both of them at the time of the contract, the parties could reasonably foresee such a loss to result from breach. As well, damages will not be paid for  losses that the plaintiff did not take reasonable steps to mitigate.