Terms to Know: Consequential Damages
Many contracts have a provision like this: NEITHER PARTY WILL BE LIABLE TO THE OTHER IN ANY EVENT FOR ANY SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION, (i) ANY DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTION, OR LOSS OF BUSINESS INFORMATION, OR (ii) CUSTOMER OR CUSTOMER’S END USER’S RELIANCE ON OR USE OF INFORMATION OR SERVICES PROVIDED, EVEN IF THE OFFENDING PARTY HAS BEEN PREVIOUSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAG
Breaking News on Consumer Product Warranties
It is rare that there is breaking news on contract law, but the Federal Trade Commission is currently settling with three major consumer products companies for offering illegal warranties (Weber-Stephen Products LLC, motorcycle manufacturer Harley-Davidson Motor Company Group, LLC, and MWE Investments, LLC, which manufactures Westinghouse outdoor power equipment). The Magnuson-Moss Warranty Act is the federal law that governs consumer product warranties. Passed by Congress in
Terms to Know: Damages
In contract law, if the other party breaches the contract (i.e., doesn’t do what he or she is obligated to do), you will have some costs, losses, or damages. We touched on this briefly when we discussed the limitations of liability. We go deeper on contract damages in the next few blogs. In contract law, you are entitled to recover the direct damages that are a reasonably foreseeable consequence of the breach. You are not entitled to receive compensation for damages that ar
