Which issue did the English Court of Exchequer address in Hadley v Baxendale (1854)?
Hadley v Baxendale explains remoteness of contractual damages. Recoverable losses include those arising naturally from the breach or reasonably contemplated at formation as…
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Which issue did the English Court of Exchequer address in Hadley v Baxendale (1854)?
Answer and explanation
Correct answer B
Hadley v Baxendale explains remoteness of contractual damages.
Recoverable losses include those arising naturally from the breach or reasonably contemplated at formation as a probable result of breach.
Section 73 of the Indian Contract Act, 1872 states a related rule for Indian contracts.
Option feedback
Option A
The judgment concerns damages after late performance, not a repudiation before performance fell due.
Option B
The judgment concerns which losses are sufficiently connected to a breach to be recoverable.
Option C
The decisive question was the recoverable measure of damages, not the existence of an implied term.
Option D
The remedy in issue was damages rather than an order compelling performance.
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