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Simple English definitions for legal terms
economic loss
Read a random definition: fool's test
A quick definition of economic loss:
Economic loss refers to a type of money loss that can happen when something goes wrong. This can include things like losing wages or profits. When someone sues for economic loss, they are trying to get back the money they lost because of the problem. For example, if a product is defective and causes damage, economic loss would include the cost of fixing or replacing the damaged property, as well as any money lost because of the damage.
A more thorough explanation:
Definition: Economic loss refers to a monetary loss that can be measured in terms of lost wages or lost profits. This term is usually used in the context of a lawsuit where damages are sought. For example, in a products-liability suit, economic loss includes the cost of repair or replacement of defective property, as well as commercial loss for the property's inadequate value and consequent loss of profits or use.
Example: If a person is injured in a car accident and is unable to work for several months, they may experience economic loss due to lost wages. In a lawsuit, they may seek damages to compensate for this loss.
Example: In a products-liability suit, a company may be sued for economic loss if their product is defective and causes damage to property or results in lost profits for the user.
The examples illustrate how economic loss can be measured in terms of monetary value and how it can be used as a basis for seeking damages in a lawsuit.