Reviewed case brief

Hadley v. Baxendale

(1854) 9 Exch 341; 156 ER 145

(1854) 9 Exch 341; 156 ER 145 · Court of Exchequer (England)

damagesremotenesscontemplationtwo-limbsconsequential-lossforeseeabilitySection-73
Court
Court of Exchequer (England)
Year
1854
Subjects
Law of Contract I
Reviewed
2026-08-02

Rule established

Damages for breach of contract are limited to those: (1) arising naturally from the breach in the usual course of things (first limb), or (2) those which were in the reasonable contemplation of both parties at the time of contracting as the probable result of breach (second limb, special damages requiring notice).

Facts

    Issues

      Held

        Ratio decidendi

        How to use it in an exam

        Editorial source

        (1854) 9 Exch 341; 156 ER 145; verified via umn.edu, lexology.com, ipsaloquitur.com, oxbridgenotes.co.uk, opencasebook.org

        Educational summary only. Read the reported judgment or an authorised law report before relying on the case professionally.