Does the warranty cover consequential damages?

In the context of the sale of goods, warranty provisions will typically cover defective products and the seller’s liability will be limited to the replacement or repair of the goods and may not cover so-called “consequential” damages.

What are damages for breach of warranty?

(2) The measure of damages for breach of warranty is the difference at the time and place of acceptance between the value of the goodsaccepted and the value they would have had if they had been as warranted, unless special circumstances show proximate damages of a different amount.

What are consequential damages in insurance?

Consequential Damages — consequential damages are an indirect result of a direct loss. Lost profit, lost rents, and lost business opportunities are examples of consequential damages that could be incurred as a result of a direct physical loss to property.

When to claim damages for reps and warranties breaches?

When one party to an M&A agreement alleges that the other breached its representations and warranties, the damages analysis can be complex, depending on the terms of the agreement. Generally, a claim for indemnification due to a breach of representations and warranties is treated as a claim for breach of contract.

What are the different types of consequential damages?

Commonly, consequential damages include property damage, personal injury, attorneys’ fee, lost profits, loss of use, liability of buyer to customers, loss of goodwill, interest on money withheld by customers, and damages related to third party claims.

What kind of damages are caused by a breach?

This can include direct damages, which are the direct and probable result of the breach, as well as consequential damages, which flow indirectly from the breach due to special circumstances the parties had reason to know.

Can you use indirect damages as a substitute for incidental damages?

So, disclaimers of indirect damages should not be viewed as a substitute for explicit disclaimers of incidental and consequential damages, which always should be expressly disclaimed.