consequential damages

consequential damages

(1) Damages that do not flow directly from some wrong, injury, or taking. A buyer who refuses to proceed to closing for no legal reason may be liable for the seller's directdamages of the difference between the agreed-upon purchase price and the price ultimately obtained for the property, or the interest on the money if the sums are identical, plus any additional costs of marketing.The buyer might also be liable for the seller's consequential damages consisting of its loss of earnest money on another property,but only if the buyer knew the seller was depending on the closing to fund money for the seller's new home.(2) In a condemnation award,consequential damages are those suffered when the remaining property is injured because of the loss of the condemned property.A farmer's fields may be too small for efficient cultivation by large machinery after the county condemns enough land for roads to cross through the fields. A storekeeper's business may suffer as a consequence of its parking lot being taken for construction of a fire station.