Judgment Hadley v Baxendale

baron alderson

now think proper rule in such case present this: 2 parties have made contract 1 of them has broken, damages other party ought receive in respect of such breach of contract should such may , reasonably considered either arising naturally, i.e., according usual course of things, such breach of contract itself, or such may reasonably supposed have been in contemplation of both parties, @ time made contract, probable result of breach of it. now, if special circumstances under contract made communicated plaintiffs defendants, , known both parties, damages resulting breach of such contract, reasonably contemplate, amount of injury ordinarily follow breach of contract under these special circumstances known , communicated. but, on other hand, if these special circumstances wholly unknown party breaking contract, he, @ most, supposed have had in contemplation amount of injury arise generally, , in great multitude of cases not affected special circumstances, such breach of contract. for, had special circumstances been known, parties might have specially provided breach of contract special terms damages in case, , of advantage unjust deprive them. above principles think jury ought guided in estimating damages arising out of breach of contract...

but obvious that, in great multitude of cases of millers sending off broken shafts third persons carrier under ordinary circumstances, such consequences not, in probability, have occurred, , these special circumstances here never communicated plaintiffs defendants. follows, therefore, loss of profits here cannot reasonably considered such consequence of breach of contract have been , reasonably contemplated both parties when made contract.