ABSTRACT
The seminal text on contractual damages, McGregor on Damages, defines consequential loss as follows:
In contract the normal loss can generally be stated as the market value of the property, money or services that the claimant should have received under the contract, less either the market value of what he does receive or the market value of what he would have transferred but for the breach. Consequential losses are anything beyond this normal measure such as profits lost or expenses incurred through the breach and are recoverable if not too remote. The distinction is not the same as that between the first and second rules in Hadley v. Baxendale: a consequential loss may well be within the first rule. 1
