LANDMARK CASE

Hadley v. Baxendale

(1854) 9 Exch 341 · Court of Exchequer (UK) · Contract law

At a glance

Citation: (1854) 9 Exch 341
Court: Court of Exchequer (UK)
Area of law: Contract law
In one line: Only losses arising naturally or reasonably contemplated by both parties when contracting.

1 Facts

A carrier delayed delivering a broken crankshaft, so the mill stayed closed longer.

2 Issue

What damages can be recovered for breach of contract?

3 What the court decided

Only losses arising naturally or reasonably contemplated by both parties when contracting.

4 Why it matters

Reflected in Section 73 of the Indian Contract Act.

5 Think about it

Would the result change if the carrier had been told the mill would stop?

6 Analyse it yourself

Read the full judgment from an official source or a law database, then brief it in seven steps: facts, issues, arguments, decision, ratio, obiter and significance. Always check the citation before you rely on it.

7 More cases on Contract law

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Central Inland Water Transport Corporation v. Brojo Nath Ganguly (1986) 3 SCC 156
Energy Watchdog v. Central Electricity Regulatory Commission (2017) 14 SCC 80
Fateh Chand v. Balkishan Dass AIR 1963 SC 1405
Felthouse v. Bindley (1862) 11 CB (NS) 869

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