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Simple English definitions for legal terms
extraordinary loss
Read a random definition: destruction and appropriation of property
A quick definition of extraordinary loss:
An extraordinary loss is a type of loss that happens unexpectedly and is not common. For example, if a natural disaster destroys a business, that would be an extraordinary loss. It is different from a regular loss, which is when something loses value over time or is damaged in a more common way. Extraordinary losses are usually very big and can have a big impact on a person or business.
A more thorough explanation:
Definition: An unusual and infrequent loss, such as a loss resulting from a natural disaster.
Examples:
- A company experiences a significant loss due to a hurricane that damages their facilities and disrupts their operations.
- A business suffers a loss from a fire that destroys their inventory and equipment.
These examples illustrate how an extraordinary loss is a significant and unexpected event that can have a major impact on a company's financial performance. These losses are not part of the normal course of business and are typically not anticipated or planned for.