Rather than turning on foreseeability, the difference between direct and consequential damages depends on whether the damages represent (1) a loss in value of the other party’s per­form­­ance, in which case the damages are direct, or (2) collateral losses following the breach, in which case the damages are consequential. Note that many leases drafted by landlords attempt to contractually waive a Texas landlord's duty to mitigate; however, a landlord is required to mitigate damages, and any attempt to waive a landlord's duty to mitigate in a lease contract is void. And having read Hadley v. Baxendale as law students, we all do have a general understanding of those concepts. The most common provision is a waiver of consequential damages. I. Prop. Consequential damages are a serious concern. Dorestin v. Hollywood Imports, Inc., 45 So. Consequential damages defined and explained with examples. Texas courts have provided the following … In this case, the concept of special damages refers to specific expenses, such as clearly quantifiable medical bills, property damages and/or loss of wages. Frequently, though, potential liability for consequential damages will be curbed via a liquidated damages clause in the contract. That’s a mouthful, but the following case helps make it clear: You hire a messenger service to … Detriment that arises from the interposition of special, unpredictable circumstances. To be awarded consequential damages in a lawsuit, they must be a foreseeable result of an act. App. (5) "Exemplary damages" means any damages awarded as a penalty or by way of punishment but not for compensatory purposes. The definition of consequential damages, also known as "special damages," refers to damages from an indirect result of an event or incident. When actual, consequential damages are in play, damages could quickly spiral out of control. The purchase agreement stated: “Flexjet will not be liable to either customer for any indirect, special, consequential damages or punitive damages arising out of any lack or loss of use of any aircraft, equipment, spare parts, maintenance, repair or services rendered or delivered under this purchase agreement.” Id. Consequential damages are damages which flow indirectly from a breach of contract and are typically related to delays in performance and delays in completion of a project. They must be both foreseeable and directly connected to the breach of contract. 3d 819 (Fla. 4 th DCA 2010). Textbooks and treatises on contract law will define consequential damages in the context of the following summary of contract damages: Special damages must be foreseeable, not too remote or uncertain, and must be plead. The A201 mutual waiver clause has aggravated a perplexing problem — how to define “consequential damages,” the subject of the waiver. Consequential damages must be foreseeable. There are examples of cases in such diverse states as Missouri, Indiana, Georgia, California, Texas, West Virginia, Louisiana, New Jersey, Tennessee, Wyoming, Arkansas, Alabama, Colorado, South Carolina, Arizona, Hawaii, South Dakota, and even Florida that allow recovery against a surety for consequential damages, often the same damages that the obligee could recover against the principal. Pursuant to UCC 2-711 (1)(a), when there is a repudiation of the contract by the seller, the buyer may “cover”. If the marked value cannot be … Read more → Pain and suffering, however, falls under the heading of general damages. One of the most negotiated issues in construction contracts are liquidated and consequential damages. App. Examples include lost profits, reduced value of a piece of real estate, and lost bonding capacity. ... 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