incidental damages
Definition
Incidental damages are the extra costs you rack up because someone broke a contract or sold you something defective. These are the reasonable expenses you spend trying to deal with the fallout, like shipping fees, storage costs, or the time you spent finding a replacement vendor.
Example
If a supplier fails to deliver ingredients for your bakery and you have to pay rush shipping fees to get them from another source, those shipping fees count as incidental damages you can claim back from the original supplier.
Watch Out
Incidental damages are often confused with consequential damages, which cover bigger losses like lost profits, so make sure you understand which type applies to your situation before going to court.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.