Consequential loss and damage Clause Samples

The "Consequential loss and damage" clause defines the extent to which a party is liable for indirect or consequential losses arising from a breach of contract. Typically, this clause limits or excludes liability for losses that are not a direct result of the breach, such as lost profits, loss of business opportunities, or reputational harm. By clearly outlining what types of damages are recoverable, the clause helps allocate risk between the parties and prevents unexpected or disproportionate claims, ensuring greater certainty and predictability in the contractual relationship.