Template:Loss v damages

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 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.