The CA Hub

CIMA BA4 · Chapter 11 · Question 6 of 10

Under English law, the rule in Hadley v Baxendale concerns which aspect of damages?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: C) Remoteness: losses are recoverable if they arise naturally from the breach or were in the reasonable contemplation of both parties when contracting

Explanation

Hadley v Baxendale established the two limbs of remoteness: losses arising naturally in the usual course of things from the breach, and losses that may reasonably be supposed to have been in the contemplation of both parties at the time of contracting as the probable result of breach. Other losses are too remote to recover.

All 10 questions in Chapter 11Law of contract: terms, breach and remedies MCQs with answers

More Law of contract: terms, breach and remedies MCQs

Sponsored slot availableRun a CA academy or hiring firm? Put your name in front of students preparing for this exam.Advertise →