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United States Leading Case remotenessconsequential loss

Hadley v Baxendale (as applied in US)

9 Ex. 341 (1854)
JurisdictionUnited States
CourtCourt of Exchequer (England)
Year1854
StatusBinding authority

Summary

Consequential damages for breach of contract are limited to losses reasonably foreseeable as a probable result at the time of contracting.

Key Principle

Consequential damages for breach of contract are limited to those that were reasonably foreseeable at the time of contracting; widely adopted across US jurisdictions.

Area of Law

contract

Related Cases

Mann v Paterson Constructions Pty Ltd (2019) 267 CLR 560

On termination of a building contract, a builder may recover reasonable value of work done in restitution, subject to the contract price as a ceiling where work was performed under a valid contract.

Paciocco v Australia and New Zealand Banking Group Ltd (2016) 258 CLR 525

Bank late payment fees are not penalties where they represent a genuine pre-estimate of loss or protect a legitimate interest of the stipulating party.

Simic v New South Wales Land and Housing Corporation (2016) 260 CLR 85

High Court of Australia examined the principles governing rectification of written contracts for common intention and unilateral mistake in equity.

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