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Accordingly, a consequential damages waiver will exclude any damages, other than direct damages, even if they are reasonably foreseeable because such damages are one or two links down the causal chain.
BREAKING DOWN 'Punitive Damages'. Punitive damages are generally taxable to the recipient, while compensatory damages are not. Punitive damages are among the most difficult type of financial redress to acquire in court, as they generally require proof of substantial and intentional injuries on the part of the defendant. RELATED TERMS.