header-logo header-logo

Home Login E-newsletter About us
12 April 2024 / C Haward Soper
Issue: 8066 / Categories: Features , Profession , Contract , Commercial
printer mail-detail

Consequential loss: searching for the meaning

© Copyright LexisNexis 2026. All Rights Reserved.
167816
What’s the true meaning of ‘consequential loss’? C Haward Soper consults the case law—and that other authoritative source, ChatGPT…
  • Considers what commercial professionals mean by the term ‘consequential loss’ and provides a summary of relevant case law.
  • Compares these definitions with those given as a result of entering prompts into ChatGPT, showing that AI’s usefulness in this area is limited for now.

All contract professionals will be aware of—and perhaps scared of—consequential loss. It’s a matter of interest to any lawyer engaged in the drafting of indemnities or exclusion clauses, whether in general commercial contracts or in mergers and acquisitions.

To help clarify the meaning of the term, I have consulted the relevant case law—and enlisted the help of an expert, ChatGPT, for advice. According to CBS News, one lawyer used ChatGPT last year to prepare for a court hearing. It went horribly awry, with ChatGPT inventing ‘court cases that didn’t exist’. My experiments in AI also show that its usefulness is limited.

Precise limitation

Why

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Read All
Sponsored by
NLJ Career Profile: Nikki Bowker, Devonshires

NLJ Career Profile: Nikki Bowker, Devonshires

Nikki Bowker, head of litigation and dispute resolution at Devonshires, on career resilience, diversity in law and channelling Elle Woods when the pressure is on

Ellisons—Sarah Osborne

Ellisons—Sarah Osborne

Leasehold enfranchisement specialist joins residential property team

DWF—Chris Air

DWF—Chris Air

Firm strengthens commercial team in Manchester with partner appointment

NEWS
Read All
NLJ this week: When post-breach events rewrite damages claims
Contract damages are usually assessed at the date of breach—but not always. Writing in NLJ this week, Ian Gascoigne, knowledge lawyer at LexisNexis, examines the growing body of cases where courts have allowed later events to reshape compensation
NLJ this week: Supreme Court redraws unfair prejudice rules
The Supreme Court has restored ‘doctrinal coherence’ to unfair prejudice litigation, writes Natalie Quinlivan, partner at Fieldfisher LLP, in this week' NLJ
NLJ this week: ‘Joe Donor’ ruling exposes dangers of unregulated conception
The High Court’s refusal to recognise a prolific sperm donor as a child’s legal parent has highlighted the risks of informal conception arrangements, according to Liam Hurren, associate at Kingsley Napley, in NLJ this week
NLJ this week: CILEX warns Mazur ruling must spark reform
The Court of Appeal’s decision in Mazur may have settled questions around litigation supervision, but the profession should not simply ‘move on’, argues Jennifer Coupland, CEO of CILEX, in this week's NLJ
NLJ this week: Conditional job offers carry hidden risks for employers
A simple phrase like ‘subject to references’ may not protect employers as much as they think. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, analyses recent employment cases showing how conditional job offers can still create binding contracts
Copyright © 2026 LexisNexis
back-to-top-scroll