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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.
Rationale for Punitive Damages. Punitive damages are meant to punish and to deter similar wrongful or repugnant conduct. In the car accident example above, suppose that Mark intentionally sideswiped Tomâs car after he thought that Tom cut him off on the highway.