Does it damage the engine if timing belt breaks on a 1997 contour with 4 cylinder engine?

Yes, a broken timing belt on a 1997 Ford Contour with a 4-cylinder engine will almost certainly cause significant engine damage. Unlike interference engines, where the pistons and valves collide directly, the 2.0L Zetec engine in many 1997 Contours is considered an interference engine. This means that if the timing belt breaks, the pistons can collide with the valves, bending or breaking them. This requires a very expensive engine repair, often exceeding the value of the car itself.