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Hadley v Baxendale (Remoteness)

  • Losses which are too remote are not recoverable. 
  •  Losses which arise in the usual course of things as a result of the breach (NORMAL LOSS) are recoverable 
  • Losses which are out of the ordinary and which would not ordinarily have been in the contemplation of either party to the contract (ABNORMAL LOSS) are not recoverable 
  • - unless the party-in-breach knew or ought to have known about the possibility of such unusual losses.
  • IN THIS CASE, Baxendale did not know that delay would cause so much loss of profit. THEREFORE, Baxendale was not liable


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