Damages

Damages are compensation for a loss suffered that a person or company can claim from another person or organization. The aim is to restore the situation that would have existed if the damaging event had not occurred.

When is there a claim for damages?

In principle, any person who intentionally or negligently unlawfully injures the life, body, health, freedom, property, or any other right of another person is liable for damages.

In addition, claims for damages may arise from:

• Breach of contractual obligations
• Delay
• Impossibility of performance
• Damages in lieu of performance in the event of non-performance
• Strict liability (e.g., Product Liability Act)

Requirements for claims for damages

In order for a claim to exist, the following points must generally be fulfilled:

• Damage (e.g., personal injury, property damage, or financial loss)
• Action or omission that caused the damage
• Illegality of the action
• Fault (intent or negligence) – except in the case of strict liability
• Causality between action and damage

Examples of damages

• Personal injury: A craftsman negligently injures a customer while working.
• Property damage: A service provider accidentally damages a customer's laptop.
• Financial loss: An agency delivers a faulty campaign that leads to a loss of revenue for the customer.
• Damages for non-performance: A contractor fails to perform an agreed service on time or at all, causing damage to the client.
• Product liability: A defective product causes a fire at the end customer's premises.