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English definition of “consequential damages”

consequential damages

noun [plural]    
LAW, INSURANCE money that a law court orders a person or company to pay to someone else for problems or losses that happen as a result of a mistake or illegal action that they were originally responsible for: Consequential damages are a type of compensation for losses that are caused indirectly by a particular event , for example the loss of future earnings suffered by the victim of a traffic accident .
(Definition of consequential damages noun from the Cambridge Business English Dictionary © Cambridge University Press)
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