Examlex
You own an auto liability policy with 150/250/50 limits. You accidentally run into a 45-foot semi-trailer. The trailer is totally destroyed and was valued at $70,000. After your insurance company settles your claim, you would still owe:
Incidental Damages
Additional costs incurred as a consequence of a breach of contract, beyond the direct damages or loss.
Lost Profits
Lost profits refer to the potential earnings a company or individual was unable to realize due to another party's wrongful acts or breaches of contract.
Defective Performance
The failure to meet the required or expected standards of performance in the execution of a contractual duty or obligation.
Computation of Damages
The process of calculating the amount of money that one party must pay to another as compensation for harm or loss caused by a breach of contract, negligence, or other wrongful act.
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