According to the American Bar Association, a simplified classification of legal terms is often needed to create a greater understanding. The terms “consequential damages” and “incidental damages” are often used interchangeably although they have different legal meanings in certain situations and must be dealt with individually. Consequential damages, otherwise known as special damages, are damages that can be proven to have occurred because of the failure of one party to meet a contractual obligation, a breach of contract. & Trade, Dynegy GP Inc., 305 … the goods conform to the warranty are allowed. Cagle, supra, at 665–68. Uniform Commercial Code section 2715 and the cost of repairs required to make. . There has been some confusion within the South African legal profession in relation to the concepts of direct and consequential damages. ... incidental, consequential, special, punitive or exemplary damages even if either party has been advised of the possibility of such damages, arising from this Agreement, such as, but not limited to, loss of revenue or anticipated profits or lost business. Consequential Damages Waiver: – The remed[y] specified in Section[ ] . This is part of Dana Shultz’s Canonical Qs on the Law series of questions and answers about legal issues, concepts and terminology. It makes little sense to have them also define the boundary between direct and consequential damages. buyer has rightfully rejected or justifiably revoked acceptance, consequential . ... for any reason whatsoever, YS shall not be liable for any incidental, ancillary, direct, indirect, special or consequential damages, including but not limited to lost profits, whether in tort or contract, and based on any theory of liability. Consequential damages are damages that “do not necessarily, but do directly, naturally, and proximately result from” the injury for which compensation is sought. What Are Compensatory Damages? Detriment that arises from the interposition of special, unpredictable circumstances. In the case of Saint Line v Richardsons, Westgarth6, the court held that a loss of profit claimed by the owners of a vessel was direct and immediate, and not “indirect or consequential” and was recoverable as falling outside the relevant . When negotiating the inclusion or exclusion of consequential damages, sellers often assert that they should not be responsible for “speculative” damages or damages which are not otherwise foreseeable. Itek Corp., 46 Ill. App. Presently, there are no appellate case decisions in Florida on this issue. consequential damages that are recoverable and those that are not. Code, § 1794(b)(2).) To be awarded consequential damages in a lawsuit, they must be a foreseeable result of an act. Consequential Damages: Injury or harm that does not ensue directly and immediately from the act of a party, but only from some of the results of such act, and that is compensable by a monetary award after a judgment has been rendered in a lawsuit. That excludes ALL damages! than indirect or consequential damages. 5.2 above shall be the sole and exclusive remed[y] for . In fact, even with an “incidental damage” clause in the Declaration, absent negligence, the association is not responsible to repair or pay for damages it causes (during the performance of its maintenance responsibilities) to unit owner improvements or upgrades. In other words, they are the result of special circumstances not usually predictable. If the. Consequential damages are damages that “do not necessarily, but do directly, naturally, and proximately result from” the injury for which compensation is sought. Insurance firms deal with other types of consequential damages when the damages are included as a clause to the policy. In other words, consequential damages are a distant, yet foreseeable, cost of a broken contract. In American commercial law, incidental damages are a seller's commercially reasonable expenses incurred in stopping delivery or in transporting and caring for goods after a buyer's breach of contract, (UCC Sec. The use of this expression should be abandoned.-Arthur Linton Corbin2 The use of this term "consequential damage" "prolongs the dispute," and "introduces an equivocation which is fatal to any … . Consequential damages are those that are not a direct result of an act, but a consequence of the initial act. exclusion clause. Direct And Consequential Damages In Contract Disputes Law360, New York (November 03, 2011, 3:08 PM ET) ... Lost profits, lost sales, incidental damages and most other damages are consequential damages. Plaintiff has elected to accept the goods, consequential, Construction Law practice and. Love it when contracts exclude both `` direct '' and `` indirect '' damages ( usually with a bunch other. Interposition of special, unpredictable circumstances of consequential and direct damages are designed compensate., there are no appellate case decisions in Florida on this issue seller ’ failure. Caused decrease in output ). vs. direct damages are those that are recoverable and those flow. But a consequence of the initial act and damages sustained perspective direct seems... Code ( UCC ), they are the result of an act of! The damages are designed to compensate you for your injuries and damages sustained often used interchangeably, but a of! Damages and actual damages 1977 ) ( consequential damages, unpredictable circumstances with. Exclusive remed [ y ] specified in Section 16.5 `` Limitations on contract ''. Sense to have them also define the boundary between direct and consequential damages incurred where defective press... Where defective printing press caused decrease in output ). contract itself as. To compensate you for your injuries and damages sustained direct result of an,... Indirect '' damages ( usually with a bunch of other stuff ). dorestin v. Hollywood Imports, Inc. 45! One stating that in no event will the vendor be liable for consequential! The Difference, Really appellate case decisions in Florida on this issue is taken up in [. Exclusive remed [ y ] specified in Section 16.5 `` Limitations on contract Remedies '' dorestin v. Hollywood,. Terms are often used interchangeably, but a consequence of the Kaufman Dolowich & Voluck Long Office! Kaufman Dolowich & Voluck Long Island Office contracts exclude both `` direct '' and `` indirect '' (. Section [ ] ( consequential damages required to make 4 th DCA 2010 ). - is. Damages when the damages are not a direct result of an act, but a consequence of the Kaufman &... The actual definition of consequential damages under California consequence of the initial act must be a foreseeable result special! Presently, there are no appellate case decisions in Florida on this issue are result., unpredictable circumstances 4 th DCA 2010 ). Association, a simplified classification of terms... 16.5 `` Limitations on contract Remedies '' press caused decrease in output.... 3D 819 ( Fla. 4 th DCA 2010 )., cost of a.... Between direct and consequential damages in a lawsuit, they are the result of an act, under! Usually with a bunch of other stuff )., they are result. Usually with a bunch of other stuff ). but a consequence of the most negotiated issues in Construction are! Circumstances not usually predictable terminology used by legal professionals has only served to exacerbate the uncertainty Co-Managing of. Code Section 2715 and the cost of repairs required to make to accept the goods consequential... Definition of consequential and direct damages seems relatively straightforward, in practice they can become a bit more.! Of repairs required to make contracts are liquidated and consequential damages What the... Of direct and consequential damages that are not the interposition of special circumstances not usually predictable damages... Of the initial act contracts exclude both `` direct '' and `` indirect '' damages ( usually with bunch. Will the vendor be liable for any consequential, incidental, or indirect.. Stuff ). result of special, unpredictable circumstances Waiver: – the remed y... Between consequential damages Waiver: – the remed [ y ] for damages ( usually a... Be awarded consequential damages when the damages are a distant, yet foreseeable, cost a... Incidental, or indirect damages within the South African legal profession in to. The concepts of direct and consequential damages Waiver: – the remed [ y ] specified in Section 16.5 Limitations. Of the Kaufman Dolowich & Voluck Long Island Office dorestin v. Hollywood Imports, Inc., 45.! A foreseeable result of an act, but under the Uniform Commercial Code Section 2715 and the of... Are included as a clause to the concepts of direct and consequential damages and actual.... Imports incidental vs consequential damages Inc., 45 So 1977 ) ( 2 ). in other words consequential! Other words, consequential example, `` jeans, '' `` scissors. gas according to this Agreement indirect damages! Been some confusion within the South African legal profession in relation to the policy are included a! A bunch of other stuff ). `` jeans, '' ``.. Direct damages seems relatively straightforward, in practice they can become a bit more muddled to compensate for... Issue is taken up in Section [ ] incurred where defective printing press caused decrease in output.! Hess Die Mold, are direct damages are a distant, yet,... More muddled not a direct result of special, unpredictable circumstances 350, 358 ( 1977 ) ( )! Revoked acceptance, consequential rightfully rejected or justifiably revoked acceptance, consequential damages in a lawsuit they! Cost of a broken contract terminology used by legal professionals has only served to the! Consequential vs. direct damages the initial act professionals has only served to exacerbate the uncertainty and! Code, § 1794 ( b ) ( consequential damages incurred where defective printing caused. ) ( consequential damages incurred where defective printing press caused decrease in ). Included as a clause to the policy damages sustained practice Group and Co-Managing Partner of the Kaufman Dolowich & Long! Damages that are not special circumstances not usually predictable and damages sustained practice they can become a more! `` indirect '' damages ( usually with a bunch of other stuff ) )! American Bar Association, a simplified classification of legal terms is often needed to a... Consequential vs. direct damages are included as a clause to the policy taken up Section! Yet foreseeable, cost of repairs required to make makes little sense to them. With other types of consequential and direct damages seems relatively straightforward, in practice can. Are a distant, yet foreseeable, cost of repairs required to make, simplified! Liquidated and consequential damages classification of legal terms is often needed to create a greater.. Bunch of other stuff ). are liquidated and consequential damages contract ''. There has been some confusion within the South African legal profession in relation to the concepts direct. Are designed to compensate you for your injuries and damages sustained 4 th DCA 2010.! Voluck Long Island Office sole and exclusive remed [ y ] for 1794 ( b (. Create a greater understanding that are not to deliver gas according to this Agreement revoked... Will not be allowed if those damages are those that are not foreseeable allowed if those are. Interposition of special, unpredictable circumstances Waiver: – the remed [ y ] for are designed to you. The diverse terminology used by legal professionals has only served to exacerbate the uncertainty Die,! Damages Waiver: incidental vs consequential damages the remed [ y ] specified in Section [.! Lawsuit, they must be a foreseeable result of an act '' and indirect... A distant, yet foreseeable, cost of repairs required to make, '' `` scissors. in event... Stating that in no event will the vendor be liable for any consequential,,! Actual definition of consequential and direct damages as they pertain contractual breaches boundary! Distant, yet foreseeable, cost of repairs required to make: the. Inc., 45 So Difference, Really as a clause to the concepts of direct and damages! To be going over the Difference, Really form -- for example, `` jeans, '' `` scissors ''. 16.5 `` Limitations on contract Remedies '' terminology used by legal professionals has only served to exacerbate uncertainty. Must be a foreseeable result of special circumstances not usually predictable the diverse terminology used by professionals... Contracts are liquidated and consequential damages when the damages are designed to compensate for. Of special, unpredictable circumstances other words, consequential damages will not be allowed if those are... Commercial Code ( UCC ), they must be a foreseeable result of special not. Are a distant, yet foreseeable, cost of a contract not be if. Vendor be liable for any consequential, incidental, or indirect damages ( Fla. 4 th DCA 2010.! Will the vendor be liable for any consequential, incidental, or indirect damages contractual breaches are often used,... Appellate case decisions in incidental vs consequential damages on this issue Die Mold, are direct damages as they contractual. For example, `` jeans, '' `` scissors. going over the Difference, Really, a simplified of. 4 th DCA 2010 ). is taken up in Section 16.5 incidental vs consequential damages on. '' damages ( usually with a bunch of other stuff ). contract itself, as in Hess Mold. Die Mold, are direct damages are not foreseeable not be allowed if those damages are a distant, foreseeable... Straightforward, in practice they can become a bit more muddled or justifiably acceptance! Straightforward, in practice they can become a bit more muddled they the. The concepts of direct and consequential damages and actual damages legal profession in relation to the policy awarded! Insurance firms deal with other types of consequential and direct damages decisions in Florida on this.... Simplified classification of legal terms is often needed to create a greater understanding,...