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Editing Hadley v Baxendale

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*Pickford delayed shipping the crank shaft to Joyce.
*Pickford delayed shipping the crank shaft to Joyce.
|procedural_history=Hadley sued the parent shipping company Baxendale for breach of contract. He asked for [[damages]] for the lost profits because of the shipping delay.
|procedural_history=Hadley sued the parent shipping company Baxendale for breach of contract. He asked for [[damages]] for the lost profits because of the shipping delay.
The jury sided with Hadley.
|issues=Must a party that breaches a contract pay for '''unforeseeable damages''' that result from a breach?
How much damages should be awarded?
|holding=Baxendale is only liable for reasonably foreseeable damages at the time the contract was made. Consequently, Baxendale (the shipping company) isn't liable for the lost profits.
The amount of injury which would ordinarily follow from a breach of contract under the special circumstances known and communicated to the other party. The loss of profits were a special circumstance that couldn't be known by the defendant, so they can't be considered in determining damages.
|judgment=New trial is ordered
|reasons=Defendant [Baxendale] should be liable for damages that are foreseen at the time of the creation of the contract. If the potential damages are unforeseen, the defendant cannot be liable for them.
|case_text_links={{Infobox Case Brief/Case Text Link
|case_text_links={{Infobox Case Brief/Case Text Link
|link=https://law.justia.com/cases/foreign/united-kingdom/9-ex-ch-341-1854.html
|link=https://law.justia.com/cases/foreign/united-kingdom/9-ex-ch-341-1854.html
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}}
}}
}}
}}
'''Issue''': How much damages should be awarded?
'''Holding''': The amount of injury which would ordinarily follow from a breach of contract under the special circumstances known and communicated to the other party. The loss of profits were a special circumstance that couldn't be known by the defendant, so they can't be considered in determining damages.
'''Reasons''': Defendant should be liable for damages that are foreseen at the time of the creation of the contract. If the potential damages are unforeseen, the defendant cannot be liable for them.
'''Judgment''': New trial is ordered.
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