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Hadley v Baxendale - Contract Law (Consequential Damages) - IRAC, Argument & Legal Summary, Questions & Answers, and Legal Significance for 1L Law Students

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Course
Contract Law

Institution
Private Study

Hadley v Baxendale IRAQ for Contract Law w/ helpful analysis to understand the case and apply it to the final exam/class Package includes 4 pages of; (1) Visual and Organized IRAQ of Hadley v Baxendale case about expectations damages. (2) Comparison of Plaintiff and Defendant's arguments and the Co...

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Uploaded on April 24, 2023
Number of pages 4
Written in 2022/2023
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A p a r t y i s o n l y l i a b l e f o r d a m a g e s t h a t a r e r e a s o n a b l y f o r e s e e a b l e
b y b o t h p a r t i e s a t t h e t i m e t h e c o n t r a c t w a s m a d e . C o n s e q u e n t i a l
d a m a g e s a r e o n l y r e c o v e r a b l e i f t h e y w e r e i n t h e c o n t e m p l a t i o n o f
b o t h p a r t i e s w h e n t h e c o n t r a c t w a s f o r m e d .HADLEY V. BAXENDALE
I n H a d l e y v . B a x e n d a l e ( 1 8 5 4 ) , t h e p l a i n t i f f s , H a d l e y a n d a n o t h e r , o p e r a t e d a m i l l . T h e
c r a n k s h a f t o f t h e i r m i l l b r o k e , a n d t h e y c o n t r a c t e d w i t h t h e d e f e n d a n t s , B a x e n d a l e a n d o t h e r s ,
t o t r a n s p o r t t h e b r o k e n c r a n k s h a f t t o a n e n g i n e e r i n G r e e n w i c h f o r a r e p l a c e m e n t t o b e
m a d e . T h e p l a i n t i f f s e m p h a s i z e d t h e u r g e n c y a n d n e c e s s i t y o f t h e r e p a i r . T h e d e f e n d a n t s ,
h o w e v e r , d e l a y e d t h e d e l i v e r y , c a u s i n g t h e p l a i n t i f f s t o l o s e b u s i n e s s d u e t o t h e m i l l ' s
i n o p e r a b i l i t y . T h e p l a i n t i f f s s u e d f o r d a m a g e s r e s u l t i n g f r o m t h e l o s s o f b u s i n e s s . I s t h e d e f e n d a n t l i a b l e f o r t h e c o n s e q u e n t i a l d a m a g e s
s u f f e r e d b y t h e p l a i n t i f f d u e t o t h e d e l a y i n d e l i v e r y ,
w h i c h l e d t o t h e l o s s o f p r o f i t s f r o m t h e m i l l ' s
i n o p e r a b i l i t y ?
T h e c o u r t d e t e r m i n e d t h a t t h e d e f e n d a n t s w e r e n o t a w a r e o f t h e
e x t e n t o f t h e p o t e n t i a l l o s s t h a t c o u l d r e s u l t f r o m a d e l a y i n d e l i v e r i n g
t h e c r a n k s h a f t . T h e p l a i n t i f f d i d n o t e x p l i c i t l y i n f o r m t h e d e f e n d a n t s
a b o u t t h e s p e c i f i c c o n s e q u e n c e s o f a l a t e d e l i v e r y , a n d t h e
d e f e n d a n t s h a d n o r e a s o n t o k n o w t h a t t h e m i l l ' s o p e r a t i o n s
d e p e n d e d e n t i r e l y o n t h e c r a n k s h a f t . T h e d e f e n d a n t s c o u l d n o t h a v e
r e a s o n a b l y f o r e s e e n t h e l o s s o f p r o f i t s d u e t o t h e d e l a y .
T h e d e f e n d a n t i s n o t l i a b l e f o r t h e c o n s e q u e n t i a l
d a m a g e s s u f f e r e d b y t h e p l a i n t i f f r e s u l t i n g f r o m t h e d e l a y
i n d e l i v e r y , a s t h e l o s s o f p r o f i t s w a s n o t r e a s o n a b l y
f o r e s e e a b l e b y b o t h p a r t i e s a t t h e t i m e t h e c o n t r a c t w a s
m a d e .F A C T S
I S S U E
R U L E
A N A L Y S I S
C O N C L U S I O N
L A W S C H O O L S T U D Y H E L P E R

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Summary

Hadley v Baxendale - Contract Law (Consequential Damages) - IRAC, Argument & Legal Summary, Questions & Answers, and Legal Significance for 1L Law Students

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