Consequential Loss
/ˌkɒnsɪˈkwɛnʃəl lɒs/
Definitions
- (n.) Loss or damage that does not flow directly and immediately from an act but from its consequences or results, often excluding direct or immediate losses.
The contract excluded liability for consequential loss arising from delay.
- (n.) Financial loss resulting as an indirect result of breach of contract, such as loss of profits or business, distinct from direct damages.
The claimant sought damages for consequential loss caused by the supplier's failure to deliver.
Forms
- consequential loss
- consequential losses
Related terms
See also
Commentary
Consequential loss is distinct from direct loss; many contracts specifically exclude or limit liability for consequential losses to manage exposure.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.