ABSTRACT

Even where a loss was caused by the breach, it will only result in an award if the damage is not too remote. This is known as the rule in Hadley v Baxendale.33

In Hadley v Baxendale, the plaintiff’s mill in Gloucester was brought to a standstill by a broken crankshaft. It was sent to the makers at Greenwich as a pattern for a new one. The defendant, a common carrier, promised to deliver it the following day. Owing to his neglect, it was delayed in transit, with the result that the mill remained idle for longer than it would have done had there been no breach of the contract of carriage. The plaintiffs therefore claimed to recover damages for the loss of profit caused by the delay.