Legal Definitions - incidental damages

Incidental damages

Incidental damages are additional costs that a buyer or seller incurs as a result of a breach of contract by the other party. These damages are typically awarded by courts and can include expenses related to transporting goods, finding a replacement for the contract, or any other costs that are reasonably related to the breach.

For example, if a seller breaches a contract to deliver goods to a buyer, the buyer may incur additional costs to find a replacement supplier or to transport the goods from another location. These costs would be considered incidental damages and could be recovered by the buyer in court.

Another example could be if a buyer breaches a contract to purchase goods from a seller, the seller may incur additional costs to store the goods or to find another buyer. These costs would also be considered incidental damages and could be recovered by the seller in court.

These examples illustrate how incidental damages can help compensate the injured party for any additional costs they incur as a result of a breach of contract by the other party.