Gevolgschade

Consequential damage refers to loss that does not arise directly from the event itself but occurs as a consequence thereof. Under Dutch law, in particular the Dutch Civil Code, a distinction is drawn between direct loss and consequential damage when determining liability and the quantum of damages.

This category of loss is relevant to both contractual liability and liability in tort, as parties frequently exclude or limit liability for consequential damage in their general terms and conditions or contracts. Such exclusions serve to prevent the amount of compensation from becoming disproportionately high.

In practice, consequential damage commonly arises in cases of delivery failures or defective performance of services, where a business incurs loss of revenue due to operational downtime or reputational harm.