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Foreseeability of damages

By: Series: Contract Journal ; 424(0483) 7 July 2004, 26(1)Publication details: 2004Subject(s): Summary: Discusses "Hadley v Baxendale" [1854] where H claimed damages for lost profit and other factors when B failed to deliver a new shaft for H's flour mill. B objected saying the damages were too remote and that it could not be liable. Court found B could not be held responsible for losses it could not have reasonably anticipated. Uses "Balfour Beatty Construction (Scotland) Ltd v Scottish Power plc" (HL, 71 BLR 20) as a more recent example of same principle. Concludes case implies that damages that arise naturally from a breach of contract will generally be recoverable. However, damages that do not arise naturally will not be recoverable unless they are shown to be within the contemplation of both parties at the time of making the contract.
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Journal article London Journal article ABS68082 (Browse shelf(Opens below)) 1 Available 127174-1001

Discusses "Hadley v Baxendale" [1854] where H claimed damages for lost profit and other factors when B failed to deliver a new shaft for H's flour mill. B objected saying the damages were too remote and that it could not be liable. Court found B could not be held responsible for losses it could not have reasonably anticipated. Uses "Balfour Beatty Construction (Scotland) Ltd v Scottish Power plc" (HL, 71 BLR 20) as a more recent example of same principle. Concludes case implies that damages that arise naturally from a breach of contract will generally be recoverable. However, damages that do not arise naturally will not be recoverable unless they are shown to be within the contemplation of both parties at the time of making the contract.