ACCA · Question 08 · Corporate and Business Law
Which TWO of the following statements accurately reflect the rules on remoteness of damage in contract law, as established in Hadley v Baxendale?
Answer options:
Losses that arise naturally from the breach in the usual course of things are recoverable.
The claimant must prove that the defendant intended to cause the specific loss.
Unusual or special losses are only recoverable if they were reasonably in the contemplation of both parties at the time the contract was made.
Damages are designed to punish the party in breach for their failure to perform.
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