consequential loss

Damages, as a remedy for breach of contract, is a remedy that places the innocent party, so far as money can do it, in the same situation with respect to damages as if the contract had been performed inaccordance with its terms, in the absence of the breach of contract. This principle dictates the sum recoverable for breach of contract. It is however limited by two principles of law, as to do otherwise would provide a complete and unqualified indemnity for the losses suffered as a result of unpredictable and improbable events. Consequential loss is loss suffered as an indirect result of a breach of contract rather than as a direct result.

Usage: The exclusion clause that purported to bar recovery for consequential loss was unenforceable as it was at odds with the express purpose of the contract

Related Words: damages; agreement.