consequential damages


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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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Harleysville, 10 NY3d 187, 856 NYS2d 505 (Ct of Appeals 2008) the court held that plaintiff was entitled to extra contractual consequential damages as the result of the defendant's bad faith handling of plaintiff's claim.
A special master awarded the Whites $84,000 for the actual market value of the condemned property and $84,000 in consequential damages to the remainder.
Thus consequential damages are recoverable only when statutory or constitutional provisions require the payment of compensation for property damaged or injured.(28) On the other hand, an owner's common-law remedy is not barred in situations in which the statutory remedy is incomplete or inadequate.
These cases are essentially only a recognition and application of the traditional contract principle that a contracting party may recover foreseeable consequential damages in the event of a breach of contract.
Bi-Economy sought consequential damages for the loss of its business.
But the court distinguished away the Ohio case on the ground that in the Ohio case, there were consequential damages (the shutting down of a factory and loss of production output while repairs to the defective product were made) that went beyond the cost of repairing the defective product.