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Consequential damages

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

Definizione

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.

Esempio

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

Perché rappresenta un rischio aziendale

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.

Come gestirlo

  • 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.

Riferimenti normativi

Salvo diversa indicazione, i riferimenti riguardano il diritto olandese (Burgerlijk Wetboek, il Codice Civile olandese); gli strumenti UE come il GDPR si applicano in tutta l'UE. Si tratta di informazioni generali, non di consulenza legale. Altre giurisdizioni trattano questi concetti in modo diverso. Verifichi il testo vigente e la propria situazione con un avvocato qualificato.

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