Problem setting. Сompensation for damages is one of the main ways to restore the infringed right. Despite the fact that a large number of studies are devoted to the content-related and terminological definition of the category of “damages”, the legislation governing the issue of damages is imperfect, the judicial practice in resolving disputes over their compensation is ambiguous. Analysis of recent researches and publications. The issue of content-related and terminological definition of the category of “damages” was studied by legal scholars in different ways. Fundamental research in this area was conducted by O. Ioffe, H. Matvieiev, B. Antimonov, N. Maliein, V. Maslov, F. Rabinovich, V.Raikher, L.Baranova, D.Krasnikov, Т. Krysan and other scientists. Target of research. The aim of the paper is a comprehensive study and analysis of the content and terminology of the category “damages”, their composition and correlation with the concept of “loss”. To achieve this goal it is necessary to solve the following tasks: 1) to investigate the content and terminology of the category of “damages” and their composition; 2) to correlate the concept of “damages” and the concept of “loss”. Article’s main body. The article provides a comprehensive study and analysis of the content and terminology of the category “damages”, their composition and correlation with the concept of “loss”. The author analyzes the current legislation regarding its unity in the terminology of certain types of damages. The issue of costs associated with the conclusion and execution of the contract, the breach of terms of which led to losses in the relevant party (costs-losses and other costs) is analysed. Conclusions and prospects for the development. The concepts of “damages” and “loss” (“property damage”) should be correlated taking into consideration the compensatory function of Civil law. The current legislation contains some inconsistencies regarding the terminological designation of types of damages. This drawback needs to be eliminated by amending the relevant regulations. All costs associated with the conclusion and performance of the contract, non-compliance with the terms of which led to losses in the relevant party, can be divided into two groups of costs-losses and other costs.