A more thorough explanation:

In civil cases, damages refer to the compensation that a party requests the court to award in order to make the injured party whole. The damages are usually in the form of monetary compensation to the harmed party. The court imposes damages if it finds that a party breached a duty under contract or violated some right. The sum of money included in the damages can be compensatory damages that are calculated based on the harmed party’s actual losses, or punitive damages intended to punish the wrongdoer.

• In a contract case, if a party breaches a contract, the court may award the non-breaching party either expectancy damages, reliance damages, or restitution to put the non-breaching party back into a fair position.
• In a tort case, the injured party can receive compensatory damages to compensate for all types of losses, including direct costs for medical care, property damage, or lost wages. It can also include indirect costs such as compensating for pain and suffering or inconvenience.
• When a tort wrongdoer was willfully reckless or the harm was particularly bad, the court may award punitive damages in addition to compensatory damages.

The examples illustrate how damages are awarded in different types of cases. In a contract case, damages are awarded to compensate the non-breaching party for their losses. In a tort case, damages are awarded to compensate the injured party for their losses and to punish the wrongdoer if necessary.