The research that follows looks into the effects of two concepts: Damages and Compensation. The study is qualitative, and it dives deeper into the concepts of Damages, Compensatory damages, Punitive Damages, and Compensation. It delves into the types of damages and compensation in-depth, beginning with a definition of the term based on the Indian Contracts Act. It then gives a condensed version of the term. The next topic is how it affects, what it entails, and what remedies are available to the wronged party. The facts are also supported by relevant precedents. The second arc delves into the topic of misrepresentation as to a vitiating issue in the relationship.