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Consequential Damages

seller commercial buyer harm

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.

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