The concept that an injured party may recover consequential damages only if the breaching party should have foreseen them was established in:
A) Brunswick Hills Racquet Club, Inc. v. Route 18 Shopping Center Associates.
B) Milicic v. Basketball Marketing Company, Inc.
C) Hadley v. Baxendale.
D) Rosenberg v. Son, Inc.

Question

Quizplus · Accepted Answer

The concept that an injured party may recover consequential damages only if the breaching party should have foreseen them was established in the case of Hadley v. Baxendale. In this case, the court held that damages that were not foreseeable at the time of contract formation, known as consequential or special damages, could not be recovered unless the breaching party had knowledge of the special circumstances leading to these damages.

The Concept That an Injured Party May Recover Consequential Damages