Isn't all loss consequential? A review of recent case law and its relevance to contractual practices within the built environment

The term Òconsequential lossÓ frequently arises during contract negotiations in the context where one party is seeking to limit their liability should they subsequently breach that contract. Parties may have different understandings of the term and typically an exclusion clause will not solely relate to consequential loss, but will also include other heads of losses for which the party will not be liable for, such as loss of profit, loss of revenue and loss of business. The question emerges as to whether the term consequential loss has a definitive legal meaning in its own right. This study seeks to ascertain the definition of the term consequential loss within the construction industry through a review of the legal position regarding liability for breach of contract and consequential loss through the consideration of the case law relating to this topic and the associated secondary sources of information. The study concludes by elucidating a clear interpretation of the term consequential loss when used in contract law.