Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Loss definition

What does Loss mean? In legal practice, loss means the harm, detriment or deprivation suffered—financial, physical or proprietary—and is not confined to permanent deprivation; temporary loss can suffice. The term is a broad, descriptive label used across civil, criminal, regulatory and insurance contexts. Some statutes define it for particular purposes: e.g., the Fraud Act 2006 (E&W and NI) defines gain or loss in money or other property and includes temporary loss; exposing another to a risk of loss may suffice. Comparable wording appears in Ireland. In Scotland, fraud is largely common law, but usage is similar. In civil claims (contract and tort/delict), damages compensate for loss...

Practical strategies to address ‘no loss’ defences in construction: collateral warranties, assignments, novations, management contracting, and key case law

Published by a LexisNexis Construction expert

Practice notes

A no Loss Defence frequently emerges from the contractual matrix that surrounds construction projects. By way of illustration, an agreement might be novated, the Employer may lack ownership of the land where the works are carried out, or the development could be sold after Completion before any defects come to light. Such situations (among others) can each trigger a no loss defence from a contractor or consultant said to be in breach of contract.

What is the no loss defence?

Damages for breach of contract are compensatory, aiming to place the claimant in the position it would have occupied had the contract been performed as intended. If a breach results in no loss, no damages—or at most only nominal damages—will be awarded. See Practice Note: Contractual damages—general principles. Where a breach does cause loss, but that loss is suffered by a third party, the defendant will not be liable to that third party under the contract because of privity of contract: only the contracting parties can obtain and enforce rights and obligations under that agreement. The Contracts (Rights...

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Web page updated on 21/05/2026

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