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Transfield Shipping Inc v Mercator Shipping Inc [2008] UKHL 48


P owner of vessel and lent it out to D. P had rented it out to another company at a fixed price for a day after D was suppose to return vessel. D returned vessel late. Owners had to lower the price to change the date and therefore lost money. P claims for damages for loss of difference between original rate and reduced rate


Are the plaintiffs entitled to cover for loss of profit?


If a party cannot reasonably have been assumed to accept a risk, then they are not liable for that risk.
Must look at the type or kind of loss for which the contract-breaker ought fairly to have accepted responsibility.


The loss was not of ordinary consequence


You can’t hold the defendant liable, because it is unforeseeable at the time of the contract that they assumed responsibility of this risk. P entitled to difference between market price and contract price at date of breach.

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