Simple definition
Indirect losses that result from an event rather than from the immediate harm itself.
Damages
What Does Consequential Damages Mean?
Indirect losses that result from an event rather than from the immediate harm itself.
Example in a contract
Neither party is liable for consequential damages.
What consequential damages means in a contract
This term commonly appears in remedies or limitation-of-liability sections describing the types or amounts of loss that may be claimed.
Why it may matter
The wording can affect the financial consequences of breach and may interact with exclusions, caps, or pre-agreed remedies. Review the exact language rather than relying on the label alone.
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FAQ
Questions about consequential damages.
What does consequential damages mean in plain English?+
Indirect losses that result from an event rather than from the immediate harm itself.
Where might consequential damages appear in a contract?+
This term commonly appears in remedies or limitation-of-liability sections describing the types or amounts of loss that may be claimed.
Is this definition legal advice?+
No. ClauseInsight provides concise informational explanations. The legal effect of a term depends on the complete document, facts, and applicable law.