Loss of Profits
/ˈlɒs əv ˈprɒfɪts/
Definitions
- (n.) Economic damages representing the net financial gain a party would have earned but for another's breach or wrongful act.
The plaintiff claimed loss of profits due to the defendant's breach of contract.
- (n.) A form of consequential damages awarded to compensate for the expected earnings lost from interruption or interference with business operations.
The court awarded loss of profits after the supplier's failure to deliver materials on time.
Forms
- loss of profits
Related terms
See also
Commentary
Loss of profits is a critical element in damage calculations, requiring proof of causal link and reasonable certainty.
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.