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Hadley v Baxendale: Difference between revisions
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{{cite|Hadley|Baxendale|156|ER|145}} | The great case of {{cite|Hadley|Baxendale|156|ER|145}}, on the types of loss available in a {{t|contract}}. | ||
===Facts=== | ===Facts=== | ||
Hadley operated a steam mill in Gloucestershire. Its crankshaft was broken. It arranged with W. Joyce & Co. in Greenwich for a new one. Joyce asked Hadley to send the broken one to them so they could fit it correctly to the other parts. Hadley contracted Baxendale (trading as “Pickford & Co.”) to transport the broken crankshaft to Joyce, “and in consideration thereof the defendants then promised the plaintiffs to convey the said broken shaft from Gloucester to Greenwich, and there on the said second day to deliver the same to the said W. Joyce & Co. for the plaintiffs”. | Hadley operated a steam mill in Gloucestershire. Its crankshaft was broken. It arranged with W. Joyce & Co. in Greenwich for a new one. Joyce asked Hadley to send the broken one to them so they could fit it correctly to the other parts. Hadley contracted Baxendale (trading as “Pickford & Co.”) to transport the broken crankshaft to Joyce, “and in consideration thereof the defendants then promised the plaintiffs to convey the said broken shaft from Gloucester to Greenwich, and there on the said second day to deliver the same to the said W. Joyce & Co. for the plaintiffs”. | ||
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:''But, on the other hand, if these special circumstances were wholly unknown to the party breaking the contract, '''he, at the most, could only be supposed to have had in his contemplation the amount of injury which would arise generally, and in the great multitude of cases not affected by any special circumstances, from such a breach of contract'''. For such loss would neither have flowed naturally from the breach of this contract in the great multitude of such cases occurring under ordinary circumstances, nor were the special circumstances, which, perhaps, would have made it a reasonable and natural consequence of such breach of contract, communicated to or known by the defendants. '' | :''But, on the other hand, if these special circumstances were wholly unknown to the party breaking the contract, '''he, at the most, could only be supposed to have had in his contemplation the amount of injury which would arise generally, and in the great multitude of cases not affected by any special circumstances, from such a breach of contract'''. For such loss would neither have flowed naturally from the breach of this contract in the great multitude of such cases occurring under ordinary circumstances, nor were the special circumstances, which, perhaps, would have made it a reasonable and natural consequence of such breach of contract, communicated to or known by the defendants. '' | ||
Loss of profits are not necessarily indirect losses: {{cite|Polypearl Ltd|E.On Energy Solutions Ltd|2014|EWHC|3045}} | |||