Failure to fulfill an obligation by one of the parties involved in a business transaction can generate the right to compensation for damages and losses suffered by the aggrieved party. Such losses and damages include what has actually been lost – known as actual damages or “emergent damages” – and what has consequently been foregone – referred to as lost profits or “cessation of profits.”
The reduction of a company’s economic assets, i.e., the expense incurred due to the actions of third parties, may be considered as emergent damages, thus representing tangible harm.
Lost profits, on the other hand, consist of the frustration of asset growth due to injury suffered. It is worth noting that lost profits cannot be hypothetical or imaginary, and must be determined based on data preceding the harmful event.
The IBPTECH team is prepared to assist in the identification of technical elements, quantification of losses, determination of lost profits, and act as technical experts in expert testimony involving this subject matter.