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Injury or harm that does not ensue directly and immediately from the act of a party, but only from some of the results of such act, and that is compensable by a monetary award after a judgment has been rendered in a lawsuit. Detriment that arises from the interposition of special, unpredictable circumstances. Harm to a person or property directly resulting from any breach of Warranty or from a false factual statement, concerning the quality or nature of goods sold, made by the seller to induce the sale and relied on by the buyer.
In terms of the Uniform Commercial Code (UCC)—a body of law governing commercial transactions adopted by every state except for a few articles that were not adopted in Louisiana—consequential damages are injuries that result from a seller's breach of contract.
Such damages include any loss from general or particular requirements and needs of the buyer that the seller at the time of contracting had reason to know and that could not reasonably be prevented by cover, the purchase of substitute goods or other alternatives.
n. damages claimed and/or awarded in a lawsuit which were caused as a direct foreseeable result of wrongdoing. (See: damages)
CONSEQUENTIAL DAMAGES, torts. Those damages or those losses which arise not
from the immediate act of the party, but in consequence of such act; as if a
man throw a log into the public streets, and another fall upon it and become
injured by the fall or if a man should erect a dam over his own ground, and
by that means overflow his neighbor's, to his injury.
2. The form of action to be instituted for consequential damages caused without force, is by action on the case. 3 East, 602; 1 Stran. 636; 5 T. R. 649; 5 Vin. Ab. 403; 1 Chit. Pl. 127 Kames on Eq. 71; 3 Bouv. Inst. n. 3484, et seq. Vide Immediate.