This chapter talks about how people get compensated when a contract gets broken. It explains that the main goal of damages is to make things right when someone doesn’t keep their contract promises. The chapter looks at how damages are figured out, like who caused the problem and how bad it is. It also talks about other things like how to reduce the damage and what happens if both parties are at fault. It examines how the money given in damages might be affected by taxes and interest. Additionally, it discusses special rules about penalty clauses in contracts.