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Contract
Breach & Remedies
Level 1: Recognition · Question 1 of 2
Hadley v Baxendale established the rule on remoteness of damage in contract. Recoverable losses fall into which two categories?
A.
Losses arising naturally, in the ordinary 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 they made the contract, as the probable result of the breach.
B.
Losses reasonably foreseeable at the time of the breach; and losses that were the direct and dominant cause of the damage.
C.
Direct losses; and all consequential losses however remote, provided some breach occurred.
D.
Losses that were not caused by any intervening act; and losses the claimant could not have mitigated.