Video series: Limiting liability in B2B contracts – Episode 4

Direct and Indirect loss


Welcome to the fourth in our series of short videos looking at commonly encountered liability issues in B2B commercial contracts. The topics covered in this series include liability caps, excluding liability for negligence and the Unfair Contract Terms Act.

In this episode, Richard Offord, a Senior Associate in our Technology & Commercial Transactions team, discusses direct and indirect loss, focussing on:

  • The test for determining direct loss and indirect loss under Hadley v Baxendale and the impact of other relevant caselaw.
  • How to identify whether a loss is direct or indirect.
  • Some common myths and misconceptions relating to direct and indirect loss.



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