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Indirect consequence of those damages
- Direct loss is the damage inflicted, such as destruction by fire, whereas consequential loss is the indirect consequence of those damages. In other words, the direct loss would be damage to the building and equipment, whereas the consequential loss could be the losses created by the business having to remain closed.
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Aug 10, 2023 · What Is the Difference Between Direct Loss and Consequential Loss? Direct loss is the damage inflicted, such as destruction by fire, whereas consequential loss is the indirect...
- Julia Kagan
By definition, therefore, consequential losses are exceptional and often not recoverable. Direct loss is the natural result of the breach in the usual course of things. Most foreseeable kinds of loss are direct, including financial losses such as loss of profits and loss of business or goodwill.
Mar 29, 2023 · To be able to assess potential losses, which may arise from a breach of contract, it is important to understand the distinction between direct and indirect or consequential loss. Direct: A loss which arises as: a direct and natural result of a breach and. in the ordinary course of events.
Sep 26, 2017 · Generally, the natural and ordinary meanings of these terms distinguishes between “normal loss” which is loss that every plaintiff in a like situation would suffer, and “consequential...
Apr 28, 2020 · The loss of such a contract would not be recoverable unless both parties knew that the contract might be lost in the event of such a breach. These are “indirect losses”or “consequential losses” (the terms “indirect” and “consequential” loss are used interchangeably).
Jun 20, 2022 · What are consequential losses and how do you exclude them? There are effectively only two categories of loss for breach of a contract – direct and indirect losses. ‘Consequential loss’ and ‘indirect loss’ mean the same thing (British Sugar Plc -v- Projects Ltd [1997] EWCA Civ 2438).
Nov 27, 2014 · What is consequential loss? Courts traditionally held that where one party breaches an agreement, the other party should receive damages: which fairly and reasonably arise naturally from the...
