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.
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