Damages, often referred to as loss, represent the financial compensation awarded to a party in a legal dispute due to harm or injury. This harm can arise from various situations, such as accidents, breaches of contract, or negligence. The purpose of damages is to restore the injured party to the position they would have been in had the harm not occurred. There are different types of damages, including compensatory damages, which cover actual losses, and punitive damages, which are intended to punish the wrongdoer. The amount awarded can vary based on the severity of the loss and the circumstances surrounding the case.