Quality Appliances sells a flat top range to Ryan for his home. The contract of sale excludes liability for consequential damages. When Ryan turns on the range , it catches fire, burning Ryan severely. Ryan cannot recover for his injuries because of the exclusion of damages clause.

Consequential Damages

Compensation for losses that do not directly flow from an act but result indirectly from it.

Liability

The state of being legally responsible for something, particularly in the context of debts or legal judgments.

Contract

A legal commitment made between two or more participants that is upheld by law.