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consequential damages


consequential damages, defined:

damages that arise indirectly from the injurious event.

consequential damages, as it might be used:

The court held that the debtor had not have suffered significant consequential damages.

An example of consequential damages:

Fiona has a small side business as an event planner. Hired by a houseware retailer in her city to organize a wine tasting, Fiona contracted with a beverage wholesaler to provide all the wine that would be needed. On the day of the event, the wine didn't arrive and the wholesaler couldn't be reached. The event failed horribly. Fiona's professional reputation suffered, and she lost business as a consequence. Fiona decided to file suit against the wholesaler asking both for compensatory damages (the money she paid vendor) as well as consequential damages (the loss of income she would experience as a result of damage to her reputation).
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