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In law, damages refers to the money paid or awarded to a claimant (England), pursuer (Scotland) or plaintiff (US) following a successful claim in a civil action.

Compensatory damages are paid to compensate the claimant for loss, injury, or harm suffered by (see requirement of causation) another's breach of duty.

On a breach of contract by a defendant, a court generally awards the sum which would restore the injured party to the economic position that he or she expected from performance of the promise or promises (known as an "expectation measure" or "benefit-of-the-bargain" measure of damages).

When it is either not possible or desirable to award damages measured in that way, a court may award money damages designed to restore the injured party to the economic position that he or she had occupied at the time the contract was entered (known as the "reliance measure"), or designed to prevent the breaching party from being unjustly enriched ("restitution") (see below).

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