Monetary damages refer to a sum of money awarded to a party in a legal case to compensate for losses or injuries suffered due to another party's actions. These damages aim to restore the injured party to the financial position they would have been in had the harm not occurred. There are different types of monetary damages, including compensatory damages, which cover actual losses, and punitive damages, which are intended to punish the wrongdoer. Courts assess the extent of the damages based on evidence presented during the trial, ensuring that the compensation is fair and just.