Q. On breach of contract only such loss can be recovered as was in the contemplation of both the parties at the time of entering into the contract. Discuss.
Answer Approach:
•Introduction: Give a brief introduction about the purpose of damages for breach of contract and mention about the important provisions (Section 73).
• Main body: Discuss in detail the remoteness of damage and the rule laid down in Hadley v. Baxendale. Make use of different case laws or illustrations to explain the difference between special circumstances and normal circumstances.
• Conclusion: Conclude by encapsulating the gist of the rule and how it serves the purpose of damages for breach of contract.
• Tip for students: This is a very important as well as predictable question and you should try to have a structure ready for this question which has a good mixture of rationale, explanations and case laws.
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