Analysis of Hadley vs Baxendale - Coursework Example

The defendant had stipulated that if the component were brought by noon any day, it would be taken to the manufacturer the next day. So the Plaintiff’s clerk took it to the defendant the next day before noon and paid 2 pounds for the services. However, because of the defendant’s negligence, the component was delayed before delivery to the manufacturer and the plaintiff received it after several days (Crompton 1).

The issue was the entitlement of damages to the plaintiff due to loss of profits and what amount of damages he or she would get. The court determined that the plaintiff was eligible for damages for the amount he would have received if the breaching party had performed (Crompton 1). This implies that the plaintiff would only be put back in the position he would have been in if the contract was not breached. However, the court held that the defendant would not have known that the delay would cause a long closure of the mill and the loss of profits because there were no special circumstances underpinning the contract (Crompton 1). Read More