Template:Loss v damages: Difference between revisions
Amwelladmin (talk | contribs) Created page with "Quick reminder: losses and damages are different, though related things. ''Losses'' are pecuniary misfortunes that you might suffer as a result of a breach of contract. They can be divided into ''direct'' losses and ''indirect'', or ''consequential'' losses. ''Damages'' are amounts a court orders a contract breaching defendant to compensate a plaintiff for its loss. They may or may not be the same amount. Damages may be ''general'', if they compensate for dire..." |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
Quick reminder: | Quick reminder: in the law of [[contract]] “losses” and “damages are” different, though related things. | ||
''[[Losses]]'' are pecuniary misfortunes that you might suffer as a result of a breach of contract. They can be divided into ''direct'' losses and ''indirect'', or ''consequential'' losses. | ''[[Losses]]'' are pecuniary misfortunes that you might suffer as a result of a breach of contract. They can be divided into ''direct'' losses and ''indirect'', or ''consequential'' losses. | ||
''[[Damages]]'' are amounts a court orders a contract breaching defendant to | ''[[Damages]]'' are the amounts a court orders a contract-breaching defendant to pay to a plaintiff as ''compensation'' for its loss. They may, or may not, be the same amount as the actual losses. | ||
Damages may be ''general'', if they compensate for direct losses, or special, if they relate to indirect losses. (There are also [[Exemplary damages|“punitive”, or “exemplary” damages]], but ''these are not available under English law for breach of contract''. | |||
[[Special damages]], as compensation for [[indirect loss|indirect losses]], are extremely rare in contract — when they are not ruled out explicitly which, in the world of finance, they usually are. | [[Special damages]], as compensation for [[indirect loss|indirect losses]], are extremely rare in contract — when they are not ruled out explicitly which, in the world of finance, they usually are. | ||
Revision as of 16:15, 4 September 2023
Quick reminder: in the law of contract “losses” and “damages are” different, though related things.
Losses are pecuniary misfortunes that you might suffer as a result of a breach of contract. They can be divided into direct losses and indirect, or consequential losses.
Damages are the amounts a court orders a contract-breaching defendant to pay to a plaintiff as compensation for its loss. They may, or may not, be the same amount as the actual losses.
Damages may be general, if they compensate for direct losses, or special, if they relate to indirect losses. (There are also “punitive”, or “exemplary” damages, but these are not available under English law for breach of contract.
Special damages, as compensation for indirect losses, are extremely rare in contract — when they are not ruled out explicitly which, in the world of finance, they usually are.