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Abstract
In legal language, damage is money paid to a plaintiff for injuries or losses suffered. It is possible that the impact of damage could extend to others who are associated or linked to the injured party and this is called ‘consequential damage’. In this specific case, the damage must be proven to be a direct and immediate consequence of the relevant fault. In fact, consequential damage is a direct harm to the other injured party. There are certain conditions that must be observed for the injured party to be compensated. These are: the injury must be directed to the original injured party, there must be a relation between the original injured party and the consequentially damaged party, and the availability of causation between the damage and the consequential damage. As to the scope of consequential damage, the paper identifies consequentially damaged parties as kinsmen and individuals who have a common financial interest. The paper explains how to file a direct claim for compensation and explains how to estimate compensation for consequential damage and the principles governing this issue. The paper also discusses problems related to consequential damage and suggests solutions to these problems.