C. Czarnikow Ltd. v. Koufos
Facts: Plaintiff and Defendant entered into a contract. Defendant was to do deliver sugar to Basra, Iraq. Defendant delayed in delivering sugar, which is highly susceptible to the market price. The price fell before delivery.
Issue: Should the defendant be liable for damages due to the lower price? How foreseeable was that damage
Holding: The defendant is liable.
Reasons: It is a foreseeable market condition that sugar prices would fall
- Must have substantial possibility within contemplation
- 2% chance of a circumstance occurring is not compensable -- 25% chance is