Hadley v. Baxendale [1854]
9 Exch. 341, 156 Eng. Rep. 145 (1854) · Court of Exchequer · England and Wales
Issue
Which consequential damages are recoverable for breach of contract?
Held
Only losses arising naturally or within the parties' contemplation are recoverable.
Exam use
Review the ratio and reasoning before applying this case in problem questions.
Summary
Foundational contract damages and foreseeability case.
Facts
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
Essay-Ready Explanation Generator
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Reference to Hadley v. Baxendale (9 Exch. 341, 156 Eng. Rep. 145 (1854)) strengthens a contract law answer because the case reflects the principle that Consequential damages require foreseeability at the time of contracting. Applied to a problem question, the case should be used after identifying the issue as Which consequential damages are recoverable for breach of contract? The stronger essay move is to connect the material facts to the court's holding, then explain whether the present facts support the same conclusion or justify distinguishing the authority.
Significance
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Exam Tips
Revision Checklist
- Name the issue before discussing facts so the marker sees the legal question immediately.
- State the holding in one sentence, then use the ratio to explain why the court reached that result.
- Use the citation and jurisdiction to show why this authority matters for the problem you are answering.
- Pair this case with one supporting or contrasting authority if the question tests limits, policy, or exceptions.