Source: Warhammer Fantasy: 8th Edition

Direct Damage
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Direct damage spells are deadly attacks that strike the foe without warning. Direct damage spells can only ever be cast on enemy units. Sometimes a direct damage spell will use a template to determine which models are hit. When this happens, the template cannot be placed in such a way that it touches friendly units or enemy units that are in close combat – this is not to say that the template won't scatter onto friends later, depending on the spell.

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