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Victoria Laundry (Windsor) Ltd v Newman Industries Ltd [1949] 2 KB 528

Facts:

Late delivery of bolier from D to P. It was 20 weeks late and caused P to have to turn down an very profitable government contract because they didn't have the boiler.

Issue(s):

Can the plaintiff recover loss of profits, which they would have made if the boiler were delivered on time?

Ratio:

In cases of breached contract the party is only able to recover the part of the loss reasonably foreseeable at time of contract. It’s enough if party was likely to see the loss.
For the plaintiffs to recover profit, the defendants would have had to know at the time of contract the prospects and terms of such contracts.

Holding:

P able to recover regular profits, not extraordinary profits.


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