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Hadley v Baxendale (as applied in US)

(1854) 9 Ex. 341, 156 Eng. Rep. 145
JurisdictionUnited States
CourtCourt of Exchequer (England)
Year1854
StatusPersuasive authority

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

Related Cases

ProCD Inc v Zeidenberg 86 F.3d 1447 (7th Cir. 1996)
Sullivan v O'Connor 363 Mass. 579, 296 N.E.2d 183 (1973)
Williams v Walker-Thomas Furniture Co 350 F.2d 445 (D.C. Cir. 1965)

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