FavoriteLoadingSave to briefcase | Rating: | By (2012)

  • PrintEmail Link
  • Viewed 5,685 times | Saved to 464 briefcases
Hadley v Baxendale [1854] EWHC J70


P owned a mill and sent broken shaft to D for pattern new one. Shaft delivery to D was delayed, therefore final delivery of new shaft to P was delayed. P brought suit against D for lost profits from mill not operating


What damages, if any, should the plaintiff be awarded?


When a contract is breached damages should be what the two parties who have reasonably contemplated them to be.
**In the case of special circumstance, both parties must be aware of the circumstance for a breach to amount to damages that would ordinarily flow from a breach of these special circumstances.
***Contemplation depends on what was communicated - knowledge


Test for Remoteness:
1. Did damages arise naturally from the breach?
2. Was it in reasonable contemplation of the parties as the probable result of the breach? (Forseeability plus probability)
3. Special circumstances communicated?

Leave a Comment

You must be logged in to participate.

This document is a general discussion of certain legal and related issues and must not be relied upon as legal advice. This document may not have been written or reviewed by a legal practitioner. For more information, please see the website Terms of Service.