CONSEQUENTIAL DAMAGES Meaning and
Definition
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Consequential damages, also known as indirect or special damages, are a legal term used to describe the financial losses or harm suffered by a party as a direct result of a specific event or breach of contract. These damages are not immediately caused by the act itself, but rather as a consequence of it or its subsequent effects.
Consequential damages can include a wide range of losses, such as lost profits, business interruptions, loss of goodwill, reputational damage, or additional expenses incurred for rectifying the breach. They are different from direct damages, which are the immediate and foreseeable losses resulting directly from the action or breach.
In legal disputes, consequential damages are often subject to specific criteria and limitations that are determined by the governing law, jurisdiction, or the terms of the contract itself. Often, contracts include clauses that limit or exclude consequential damages to a certain extent, ensuring that the parties understand and agree upon the potential financial liabilities in the event of a breach.
Determining the amount of consequential damages can be complex and requires supporting evidence that directly links the breach or event to the losses suffered. Courts may carefully examine the causation and foreseeability of these damages to establish fair compensation.
Overall, consequential damages refer to the indirect and consequential financial losses incurred by a party due to a specific event or breach of contract and have a significant impact on legal, contractual, and financial matters.
Common Misspellings for CONSEQUENTIAL DAMAGES
- xonsequential damages
- vonsequential damages
- fonsequential damages
- donsequential damages
- cinsequential damages
- cknsequential damages
- clnsequential damages
- cpnsequential damages
- c0nsequential damages
- c9nsequential damages
- cobsequential damages
- comsequential damages
- cojsequential damages
- cohsequential damages
- conaequential damages
- conzequential damages
- conxequential damages
- condequential damages
- coneequential damages
- conwequential damages
Etymology of CONSEQUENTIAL DAMAGES
The term "consequential damages" derives from the combination of two words: "consequential" and "damages".
1. Consequential: The word "consequential" comes from the Latin word "consequens", which means "following closely". It is formed by combining the prefix "con-", meaning "together" or "with", and "sequens", meaning "following" or "pursuing". Over time, "consequens" evolved into the English term "consequential" and refers to something that follows as a result or consequence of something else.
2. Damages: The term "damages" originates from the Latin word "damnum", which means "loss" or "harm". Throughout history, it has been used mainly in legal contexts to describe the monetary compensation given to a party who has suffered harm or injury due to the actions or negligence of another.
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