General legal information about contract terms in the UK, not legal advice.
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Consequential loss

Consequential loss is loss that does not flow directly and naturally from a breach but results from special circumstances, such as lost profits on another deal. Contracts often exclude it, but the meaning of the phrase has been much litigated.

Prepared by a retired English qualified solicitor (LLB, LLM) · reviewed · applies across the UK unless stated · how we draft

In more detail

Because courts have interpreted “consequential loss” narrowly, careful drafting lists the specific losses excluded — lost profits, lost savings, loss of goodwill — rather than relying on the phrase alone.

Put it into a contract

Be Contract Wise provides very powerful, carefully prepared tools to draft and review simple or complex contracts under the law of England and Wales or Scots law, explaining every clause in plain English.

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Reviewed 2026-09-24. General legal information, not legal advice.