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remotenessconsequential damagesforeseeability
Hadley v Baxendale (as applied in US)
(1854) 9 Ex. 341, 156 Eng. Rep. 145
Key Principle
Damages recoverable for breach of contract are limited to those losses that arise naturally from the breach (in the ordinary course of things) or that were within the reasonable contemplation of both parties at the time of contracting as the probable result of the breach; special-circumstance losses are recoverable only if those circumstances were communicated and known.
Area of Law
contract
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