Polypearl Limited v E.ON Energy Solutions Limited: Difference between revisions

:''The starting point is that, as a matter of general law, a claim for [[loss of profits]] may be either a [[Direct loss|direct]] or an [[indirect loss]]. It will be a direct loss if, at the time the contract was entered into, it was likely to result from the breach in question.<ref>See McGregor on Damages 19th Ed at paragraph 18-167</ref> It will be indirect if there are special circumstances known to the contract breaker at the time of the contract such that a breach would be liable to cause more loss. '''Mr Preston QC submits that the loss of profits claim in this case is a direct loss. He submits that the most obvious (and likely) loss from the breach of an obligation to purchase Product is loss of profit. I agree with that submission''' though it would be possible to conceive of other claims of [[loss of profit]] arising from other breaches which would be categorised as indirect.