For the purpose of determining what consequences are proximate and what consequences are remote the losses caused by a tort, or by a breach of contract, are divided into direct losses, and consequential losses.

Direct losses are such losses as proceed immediately from wrongful conduct, without the intervention of any intermediate cause.4

Direct losses must necessarily be proximate consequences of the act, and, therefore compensation is always recoverable in such cases.5 A person is conclusively presumed to intend the direct consequences of his acts, and therefore can not escape liability by asserting that he did not intend to do a certain thing, which was nevertheless a direct and necessary consequence of his act.6