The Meaning of "Consequential Damages"

By Jasmin Sandhu

"Although unlikely to alter the English law interpretation of the meaning of “consequential and special losses”, the decision does suggest that, dependent on the wording of the relevant clause or clauses of a particular contract, the term may have a much wider meaning. As such the decision underlines the need for careful consideration when drafting and negotiating exclusion and/or limitation clauses. To avoid ambiguity, wherever possible parties should set out expressly the losses they agree to be responsible for, and those which are expressly excluded. Parties should also bear in mind the contra proferentem rule i.e. where there is ambiguity in a contract the words will generally be construed against the party who seeks to rely them."

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Términos mencionados en esta doctrina: meaning, consequential, contract, decision, particular.