Hadley v Baxendale (1854) 9 Exch. 341

Key Point

For damages to be recoverable, the loss must be:

  1. foreseeable by a reasonable person having knowledge of the ordinary circumstances or
  2. foreseeable by a reasonable person who has knowledge of special circumstances which had been communicated to the defendant.

Facts

  • C’s mill in Gloucester was brought to a standstill by a broken crank shaft.
  • C engaged D carriers to carry the broken crank shaft to engineers in Greenwich to act as a mold for a new one.
  • Instead of delivering in one day it was delivered in several resulting in a loss of profits.

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