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Consequential damages

Indirect loss flowing on from a breach, such as lost profit, lost production or reputational harm.

Définition

Consequential or indirect damages are losses that do not arise immediately from the breach itself but as a knock-on effect, such as lost profit, business interruption or third-party claims. These are the most common target of exclusion in liability clauses. Dutch law has no fixed statutory definition; what qualifies as "consequential" depends on the contractual definition and on the attribution test of articles 6:95 to 6:98 BW.

Exemple

A supplier excludes consequential damages, so a buyer cannot recover the profit it lost while a defective component halted its factory line.

Pourquoi c'est un risque pour l'entreprise

Consequential damages are often the biggest financial exposure in a failure scenario, yet they are routinely excluded in supplier terms. If your business depends on a single supplier and that supplier fails, the resulting lost revenue and customer penalties may be entirely unrecoverable under the contract. Accepting a blanket exclusion of indirect loss without understanding what it covers means the largest risks are uninsured and unenforceable.

Comment le gérer

  • Identify your highest-value indirect exposures before signing and negotiate targeted carve-outs from the consequential-damage exclusion for those specific categories.
  • Ensure your own business interruption insurance covers losses that the contract does not allow you to recover from the supplier.
  • Use contractual milestones and service levels so that a failure is detected and escalated before downstream losses accumulate.
  • When you are the party granting the exclusion, define "consequential" precisely so you are not arguing about scope in a dispute.

Références juridiques

Sauf mention contraire, les références renvoient au droit néerlandais (Burgerlijk Wetboek, le Code civil néerlandais) ; les instruments de l'UE tels que le RGPD s'appliquent dans toute l'UE. Il s'agit d'informations générales, pas de conseils juridiques. D'autres juridictions traitent ces concepts différemment. Vérifiez le texte en vigueur et votre situation avec un avocat qualifié.

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