Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Damages definition

What does Damages mean? In legal practice, damages are a money award ordered by a court to compensate a claimant (England & Wales, Northern Ireland) or pursuer (Scotland) for loss caused by breach of contract, tort/delict or a statutory wrong. The remedy is developed mainly by case law across the UK and Ireland, with some statutory modification. The aim is primarily compensatory: in tort/delict, to put the person in the position they would have been in but for the wrong; in contract, to protect the expectation interest (and sometimes the reliance interest). Heads of loss include general and special damages (common in personal injury),...

Contractual pecuniary loss: expectation and reliance damages, consequential loss, negotiating damages and disgorgement—principles, assessment and limits under English law

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Practice notes

Categories of contractual damages—pecuniary loss

This Practice Note examines the principal categories of contractual damages available for financial (pecuniary) loss: expectation-based damages, reliance-based damages and gains-based damages.

For help with recovering wasted expenditure arising from a breach, see Practice Note: Contractual damages—damages for wasted expenditure and management time. For overarching guidance on contractual damages, consult Practice Note: Contractual damages—general principles, which cites Baron Parke in Robinson v Harman on the compensatory aim of damages for breach, namely that a party who has suffered loss through breach is entitled ‘to be placed in the same situation, with respect to damages, as if the contract had been performed.’ For advice on claiming damages for non-financial loss following breach of contract, see Practice Note: Contractual damages—non-pecuniary losses.

Be aware that contracts frequently attempt to limit or exclude the losses recoverable for a given breach, a source of substantial contention and a critical drafting consideration for lawyers. For further guidance see:

Practice Note: Exclusion and limitation of liability
Q&A: How do the English courts interpret the term ‘special damages’...

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Web page updated on 21/05/2026

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