Consequential damage or loss usually refers to pecuniary loss consequent on physical damage, such as loss of profit sustained due to fire damage in a factory 3. A consequential loss is a type of loss that comes about when circumstances beyond the control of the business owner make it impossible to use company equipment or company property to conduct the normal operations of that business. No, it is not best just left to lawyers! Indirect and Consequential Loss… The first issue was the meaning of the words "indirect and consequential loss". Limitation or exclusion clauses which speak only of "consequential loss" or "indirect or consequential loss" ordinarily will not be effective to limit or exclude liability for direct loss of production, loss of revenue or loss of profit. Indirect Loss. … The court held that by looking at the contract as a whole, it was clear that the limitation of liability clause was intended to operate as a complete code under which all liability for losses over and above those … This could be illustrated by comparing a financial loss that results from a supply of a building product with a financial loss that … If a tornado destroys the roof of a store, not only are there rebuilding costs, but the business cannot operate until the … In this case, the TCC took the view that “any general understanding of the meaning of ‘indirect or consequential loss’ must not override the true construction of that clause when read in context against the other provisions in the [agreement]”. The Buyer alleged that their indirect or consequential losses falling under the second limb of Hadley v Baxendale should be recoverable. Consequential Loss. What is consequential loss? In more exceptional circumstances, and under the second limb, are “indirect” losses or “consequential losses” - “losses likely to arise from special circumstances of the case ”. Commonly, consequential damages include property damage, personal injury, attorneys’ fee, lost profits, loss of use, liability of buyer to customers, loss of goodwill, interest on money withheld … For example, if your only obligation is to pay for services provided, then a mutual carve-out excluding "consequential or indirect losses" may benefit you if there is a breach and you can show that a loss of profit was, in fact, a direct loss which is recoverable. It is also of note that the courts in different countries interpret the words ‘consequential loss’ differently to the way that … Indirect/consequential losses. INDIRECT AND CONSEQUENTIAL LOSS CLAUSES UNDER SWISS LAW THOMAS SIEGENTHALER Dr. iur. … … As far as direct and indirect loss are concerned, although the default position is that a … For example, consequential damages are often awarded to reimburse an accident victim’s loss of wages, when he could not work for weeks after being injured in … INTRODUCTION As commercial transactions grow ever more international, more and more contracts under Swiss law are being written in English. These are particular losses recoverable only if the other parties know of those circumstances and if it was in the reasonable contemplation of the parties at the time the contract was made as being a probable result … (Fribourg), M Jur (Oxon), Attorney-at-Law Schümacher Baur Hurlimann, Zurich AND JOSEPH GRIFFITHS 1 BA (Hons) (Dunelm), Solicitor, Kendall Freeman, London 1. Consequential or indirect loss in contract law means an unusual sort of loss that arises from a special circumstance of the case, and not in the usual course of things. – The wording “indirect or consequential loss or loss of profit” will also only exclude indirect losses of profit.Oil & Gas UK - CMS | 11 November 2014. In addition to the compensatory damage, an owner can also seek for consequential damages (sometimes referred to as “indirect” or “special” damages), which include loss of product and loss of profit or revenue. Historically the words ‘consequential loss’ were held to be synonymous with ‘indirect loss’. In truth, while the terms 'indirect loss' and 'consequential loss' probably mean the same thing, there is a great deal of uncertainty about what they do mean and no well-understood and easily-applied test. exclusion of indirect damages. 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