Consequential loss

consequential loss: in contract disputes consequential loss, also known as indirect loss, is that loss that, although not the natural and direct result of a breach of contract, follows on or results from the breach in the special circumstances of the particular case. Consequential losses are recoverable as damages for breach of contract if the parties reasonably contemplated at the time the contract was made that the losses would likely result from the breach. Liability for consequential loss can be excluded via an appropriately worded exclusion clause.