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Consequential damages

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

Definição

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.

Exemplo

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

Porque é um risco para a empresa

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.

Como gerir

  • 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.

Referências jurídicas

Salvo indicação em contrário, as referências remetem para o direito neerlandês (Burgerlijk Wetboek, o Código Civil neerlandês); os instrumentos da UE, como o RGPD, aplicam-se em toda a UE. Esta é informação geral, não constitui aconselhamento jurídico. Outras jurisdições tratam estes conceitos de forma diferente. Verifique o texto em vigor e a sua situação com um advogado qualificado.

Perguntas frequentes

Questões comuns sobre este termo.

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