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Damages refer to financial compensation awarded to a party that has suffered harm due to a breach of contract, negligence, or other legal wrongdoing. In the UAE, damages can be compensatory (covering actual losses) or punitive (intended to deter wrongful conduct), though punitive damages are less common. Under Federal Law No. 5 of 1985 (UAE Civil Transactions Law), claimants must provide evidence of actual harm and a causal link between the breach and the damage suffered. In cases involving commercial disputes, UAE courts or arbitration tribunals, such as DIAC or ADGM Arbitration Centre, may award damages based on contractual terms and the extent of the loss.
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