Disclaimer of consequential damages does not excuse breaching parties from paying compensatory damages.

Question

Quizplus · Accepted Answer

Consequential damages are a separate category of damages from compensatory damages. A disclaimer of consequential damages means that the breaching party cannot be held liable for indirect or special damages that may have been incurred because of the breach, but it does not excuse them from paying compensatory damages, which are meant to cover the direct losses suffered by the non-breaching party.

Disclaimer of Consequential Damages Does Not Excuse Breaching Parties from Paying