The Measure of Contract Damages 1854

The Measure of Contract Damages 1854

The Measure of Contract Damages 1854
The Measure of Contract Damages 1854 – A dispute over the broken crankshaft of a steam engine resulted in the rule of foreseeability that is now used to determine the measure of damages from a breach of contract.

Hadley v. Baxendale case

A brief summary of the facts. Plaintiffs owned and ran a mill, and when a component of their steam engine failed, they had to shut it down. Plaintiffs then hired Defendants, who were common carriers, to transport the component to W. Joyce & Co. for a replacement part to be made. Plaintiffs sought to collect damages when delivery was delayed owing to Defendants’ negligence, leading Plaintiffs’ mill to stay closed for longer than intended.

A summary of the Rule of Law. Damages flowing naturally from the breach or those in the reasonable comprehension of the parties at the time of contracting are those to which a nonbreaching party is entitled.

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