The damages a plaintiff can recover for breach of contract are limited to those that are reasonably foreseeable at the time of contracting. This lesson explores the concept of foreseeability from its origin in the Hadley rule to more contemporary applications. The lesson can be run either as an introduction to foreseeability or as a review after you have completed your study.
On completion of the lesson, the student will be able to:
1. Restate what happened in Hadley v. Baxendale.
2. Describe what it means that losses are foreseeable.
3. Explain how a party can shift the risk of a foreseeable loss it would otherwise bear.