ExpertMedium1 markMultiple Choice
ACCA · Question 44 · Corporate and Business Law
In contract law, the rule in Hadley v Baxendale relates to which legal concept?
In contract law, the rule in Hadley v Baxendale relates to which legal concept?
Answer options:
A.
Mitigation of loss
B.
Remoteness of damage
C.
Specific performance
D.
Frustration of contract
How to approach this question
Link the famous case to its legal principle.
Full Answer
B.Remoteness of damage✓ Correct
Hadley v Baxendale is the leading case on remoteness of damage in contract law, establishing that losses are only recoverable if they arise naturally from the breach or were in the reasonable contemplation of both parties at the time the contract was made.
Common mistakes
Confusing remoteness with mitigation.
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