Damages refers to the sum of money the law imposes for a breach of contract.
There are direct damages, which are the damages that are expected and arise naturally from a breach. There are also consequential damages, which arise from special circumstances that were contemplated by both parties. How do you know what you are entitled to? Courts impose punitive damages on parties in order to punish them. These sums can be quite large. While every wronged party would like them, most are not normally awarded unless the breach constitutes an independent and willful tort. What is a tort?