Consequential (special) damages in a breach case are damages that:
Explanation
Consequential or special damages flow from the injured party's particular situation — profits lost on the next job because this one ran late — and Civil Code §3300 limits recovery to detriment that was likely to result in the ordinary course or that the breaching party had reason to foresee, the rule of Hadley v. Baxendale. (c) describes GENERAL or direct damages, which follow from the breach itself and need no special showing of foreseeability; the contrast between the two is the entire point of the category. (b) describes nominal damages, awarded under Civil Code §3360 when a right is invaded but no loss is proved. (a) confuses the measure with the price; consequential damages can exceed the contract price, which is exactly why commercial contracts so often waive them.
Law Reference: Civil Code §3300, §3360This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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