Hadley v. Baxendale, 9 Exch. 341, 156 Eng. Rep. 145 (1854)

In this 1854 seminal decision, the English court of Exchequer established the rule of foreseeability of damages which rule is to date followed by the English and American courts. Simply put, a Court cannot award consequential damages to an aggrieved party in a breach of contract action, unless the breaching party was informed of such damages at the time the contract was entered into.
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Robin Mashal
Los Angeles, California
Commercial Litigation
(310) 286-2000

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I am a litigation lawyer, licensed to practice law in the State of California. You can reach me by phone at (310) 286-2000.