financial loss

In order to recover damages, and loss recognized at law must be suffered by the claimant. That loss may be pecuniary or non-pecuniary; each type of loss is assessed by the application of different rules of evidence. Financial loss affects the value of an asset owned by the claimant.

Forms of non-pecuniary loss include pain and suffering (say, arising from personal injury), loss of reputation arising from libel or slander.

In the case of pecuniary loss, has been held to mean “any detriment, liability or loss capable of assessment in money terms … [including] … liabilities which may arise on a contingency, particularly a contingency over which the [claimant] has no control; things like loss of earning capacity, loss of a chance or bargain, loss of profit, losses incurred from onerous provisions or covenants in leases”.

Accordingly, financial loss includes expenditure, losses sustained by destruction of an asset, loss of the mere chance to complete or participate in another bargain; loss of use of an asset though transitory, diminution of value of an asset on resale, deprivation of revenue from a source of profit, or incurring a liability that would not have otherwise been suffered.

Usage: The supplier suffered financial loss as a result of the purchaser refusing to accept the goods.

Related Words: damages; breach of contract; consequential loss; direct loss; nominal damages; liquidated damages; penalties; account of profits; quantum meruit; contributory negligence; contract; mitigation of damage; remoteness of damage; assessment of damages; general damages; anticipatory breach of contract; special damages.