GLOSSARY

c definition

What does c mean?

Remoteness is a principle used to establish an award of damages in tort. The test is set out in the case of Hadley v Baxendale [1843-60] All ER Rep 461. A claimant cannot recover damages in respect of a loss that is too remote a consequence of the defendant’s breach of contract.

Losses are recoverable:

(a) if they flow naturally from the breach; or

(b) if they are in the contemplation of both parties at the time of entry into the contract.

The first limb identifies those losses that must inevitably have been within the contemplation of the parties as likely to result in the event of breach of contract. The second limb allows the claimant to recover damages that result from special circumstances, provided the defendant knows of those circumstances.


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