Legal Concept Explained
Consequential Damages
“Secondary indirect financial losses—like lost future sales or damaged reputation—caused by a contract breach, which can easily exceed the total contract value.”
Formal Legal Definition
Damages that do not flow directly and immediately from an act of a party, but only from some of the consequences or results of such act (such as lost profits, lost revenues, or damage to business reputation).
How It Appears in Actual Contracts
'In no event shall either party be liable for any indirect, special, incidental, or consequential damages, including loss of profits, data, or goodwill.'
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