What legal term refers to a payment made to compensate for harm done?

The term "damages" specifically refers to monetary compensation that is awarded to a party in a legal dispute to compensate for loss or injury that has occurred due to the actions of another party. Damages serve as a remedy in civil law, aimed at restoring the injured party to the position they would have been in had the harm not occurred. This can include compensation for medical expenses, lost wages, pain and suffering, and other related losses.

In contrast, penalties usually refer to punishments imposed for violating laws or regulations, rather than compensation for harm. Interest is the cost associated with borrowing money, typically a percentage of the principal amount, rather than a form of compensation for damages. Civil fines are monetary penalties imposed by governmental agencies for the violation of laws or regulations, focusing on punishing wrongdoing rather than compensating an injured party. Therefore, "damages" correctly identifies the legal term associated with compensation for harm done.