Consequential Damages Provide A Limitation To Contractual Remedies

Consequential damages can limit the amount of recovery that an aggrieved party is entitled to when a breach of contract occurs. If the consequential damages are not reasonably foreseeable and not provided for expressly in the contract and the special circumstances are not known by both contracting parties, these damages may not be recoverable.

The following questions have been addressed in this article:

How can a party escape the holding of Hadley v. Baxendale?
Do consequential damages clauses appear in any computer or software agreements?


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