Words and phrases

 

Direct (immediate) loss and consequential (remote) loss

Direct loss (sometimes called immediate loss) is loss that flows directly, in the normal course of events, from a breach of contract. Direct losses would be foreseeable as the result of a breach of contract, and it follows that damages are claimable to compensate for direct loss.

Consequential loss (sometimes called remote loss) is loss caused by a breach of contract, but only indirectly. Not all consequential losses are foreseeable as the result of a breach of contract. It follows that damages for consequential loss caused by a breach can only be claimed if it can be shown that the parties must have contemplated such losses as the probable consequence of a breach.