Consequential Damages - Definition - Law Dictionary Home Dictionary Definition consequential-damages

Definition :

Consequential damages. or loss usually refers to pecuniary loss consequent on pshysical damage. Such as loss of profit sustained due to fire damage in a factory. It is most frequently encountered in contracts and insurance policies when its meaning is a matter of construction. When used in an exemption clause in a contract, consequential refers to damage which is only recoverable, Hadley v. Baxendale, (1854) 9 Exch 341. See also DAMAGES.