Damages

Damages meaning

Damages is a sum of money claimed as compensation for a wrong occasioned. The term "damages" refers to any amount of money that is awarded by a court in order to compensate a claimant who has suffered loss or damage as a result of a wrong that the defendant is responsible for. The claimant must have suffered loss or damage as a result of the wrong that the defendant committed.

The only remedy recognised at common law was damages a monetary payment. By way of contrast the Court of Chancery overcame a number of difficulties in the common law process by allowing the grant of additional remedies:

1. injunction - an order of the court compelling or restraining the performance of some act;

2. specific performance - an order of the court compelling a person to fulfil a promise or agreement;

3. rescission - an order restoring the parties to their pre-contractual position; and

4. rectification - an order rectifying a written agreement that does not correctly embody the terms agreed, so as to give effect to the agreement between the parties.

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