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The principle of law laid down in Hadley v. Baxendale relates to

Hadley v. Baxendale concerns damages for breach of contract, including the recovery of special damages. Loss is recoverable when it arises naturally from the breach or was…

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The principle of law laid down in Hadley v. Baxendale relates to

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Hadley v. Baxendale concerns damages for breach of contract, including the recovery of special damages. Loss is recoverable when it arises naturally from the breach or was reasonably within both parties' contemplation when they contracted. Where unusual circumstances create additional loss, those circumstances must have been communicated to the other party. The carrier was not liable for the mill's lost profits because the relevant special circumstances had not been disclosed.

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