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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 consequence of...
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May 16, 2024 · Consequential loss examples in insurance include lost profits, interruption of operations, and reduction in wages or revenue due to a force majeure event like natural disasters, civil unrest, pandemics, and other socio-economic disruptions.
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 loss” which is anything beyond the normal measure.
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...
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.
Jun 5, 2022 · Instead, the Court found that the definition of “consequential loss” should be given its natural and ordinary meaning. The difference between direct and consequential loss was that: direct loss is a loss that every plaintiff in similar circumstances would suffer; consequential loss is a loss that goes beyond the normal measure of damages
Jun 20, 2022 · 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).
