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Last edited 24 Nov 2020
A claim for damages can only succeed if the damage is not too remote. Damage which is too remote is not recoverable, even if there is there is clear causation between the breach of contract and the loss.
In contract, the test for remoteness was described in the case of Hadley v Baxendale  and falls into two parts – firstly, the knowledge of what happens ‘in the ordinary course of things’; and secondly, actual knowledge of special or unusual circumstances outside the ‘ordinary course of things’. For more information, see Hadley v Baxendale.
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