For every breach of a term of a contract, the other party can claim damages for the losses arising from the breach. The principle for award of damages is rudimentary, dating back to the prior centuries. The principle is to put the parties in a position they would be, by money amount, if the contract had been performed. The damages are only to cover the losses and these cannot be punitive or to profit from. The damages clauses create a mechanics substituting and giving effect to this general overarching principle. The chapter explores the interplay between the general principles and contract terms on award of damages.