Hadley v Baxendale [1854]: The Rule That Rewards Silence
Hadley & Anor v Baxendale & Ors [1854] EWHC Exch J70, Court of Exchequer (England) Area of Law: Contract Law: Remoteness of Damage, Consequential Loss, Measure of Damages A note for readers new to this case: A miller's crankshaft broke. He hired a carrier to transport it to a manufacturer so a replacement could be made. The carrier delayed delivery by several days. The mill stayed shut longer than it should have. The miller sued for the lost profits. The court said no; the carrier never knew the mill's entire operation depended on that one shaft, so he could not have...
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