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Incidental Damages

Definition - What does Incidental Damages mean?

Incidental damages refer to damages awarded in breach of contract cases as compensation for commercial expenses incurred due to other party’s breach. This may include cost of returning and inspecting goods that don’t agree with contract specifications.

Justipedia explains Incidental Damages

Incidental damages form a part of compensatory damages. Under Uniform Commercial Code (UCC), incidental damages to sellers include charges incurred in stopping delivery, return, or resale of the goods after the breach from the buyer.

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