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6 December 20221 minute read

Direct and indirect damages: what these terms mean and how they are used in different jurisdictions

Every court, wherever they are in the world, sets limits on the types of losses which can be recovered following a contract breach. Following the general principle that a wronged contract party should be reasonably compensated without the breaching party being exposed to unlimited risk, how do different courts deal with this in practice? Do they use the same terminology? What are the common pitfalls?

John McKinlay, Kristof De Vulder and Neo Hwee Yong discuss how courts in the UK, Europe and APAC define these terms and highlight some practical issues to be aware of when drafting and negotiating contracts.

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