Hadley v. Baxendale [1854]
9 Exch. 341, 156 Eng. Rep. 145 (1854) · Court of Exchequer · England and Wales
Summary
Foundational contract damages and foreseeability case.
Facts
A carrier delayed delivery of a mill shaft, causing extended mill shutdown losses.
Issue
Which consequential damages are recoverable for breach of contract?
Held
Only losses arising naturally or within the parties' contemplation are recoverable.
Ratio Decidendi
Consequential damages require foreseeability at the time of contracting.
Reasoning
Damages must be limited to foreseeable consequences known at contracting.
Significance
Foundational contract damages and foreseeability case.
Related Cases
No related cases listed.
Exam Tips
Review the ratio and reasoning before applying this case in problem questions.