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4.Remoteness of loss
A loss must be reasonably foreseeable to be recoverable in connection with a breach…
In Hadley, the claimant flour-mill owner gave a broken iron shaft from a steam engine to the defendant, a common carrier, for its conveyance to a company in Greenwich for the purposes of making a replacement, new shaft. The defendant’s clerk was informed that the mill had stopped and that the delivery of the shaft was required immediately. The shaft’s delivery was delayed unreasonably due to the carrier’s “carelessness, negligence, and improper conduct”…
The court held that on the facts it could not be shown that the defendant carrier…
Alderson B, delivering the court’s judgment, explained the rule on remoteness of…
“Now we think the proper rule in such a case as the present is this:—Where two parties have made a contract which one of them has broken, the damages which the other party ought to receive in respect of such breach of contract should be such as may fairly and reasonably be considered either arising naturally, i.e., according to the usual course of things, from such breach of contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties, at the time they made the contract, as the probable result of the breach of it.”…
His Lordship continued, commenting as follows on the importance of communicating…
“Now, if the special circumstances under which the contract was actually made were communicated by the plaintiffs to the defendants, and thus known to both parties, the damages resulting from the breach of such a contract, which they would reasonably contemplate, would be the amount of injury which would ordinarily follow from a breach of contract under these special circumstances so known and communicated. But, on the other hand, if these special circumstances were wholly unknown to the party breaking the contract, he, at the most, could only be supposed to have had in his contemplation the amount of injury which would arise generally, and in the great multitude of cases not affected by any special circumstances, from such a breach of contract.”…
In line with Alderson B’s remarks in Hadley v Baxendale, the Court of Appeal in Victoria Laundry v Newman Industries
The rules on remoteness of loss were relatively recently reconsidered by the House…
The arbitrators, trial judge and Court of Appeal disagreed with the charterer and…
Somewhat corroborating the above, an earlier dated House of Lords decision confirms…
3.Date of assessment
5.Special types of losses
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