J sold goods to X, until R accidentally leaked information on the extent of J’s mark-up (in breach of J and R’s confidentiality contract) and as a result X ceased to do business with J.
J sued R.
HL held that J was entitled to claim for “loss of the chance or opportunity of repeat business” and that the question of how much could be claimed was dependent on “how long it was or should have been in reasonable contemplation of the parties that the trading relationship would continue”.
The quantification of damages depends on the judicial discretion of working out how long the trading relationship would continue and in this case it was likely to be for four years at decreasing profit margins.
Where the parties do not provide what damages are payable in the contract, and provided the Hadley rules are satisfied and it is not too remote, there is NO arbitrary limit that can be set to the amount recovered.
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Contract Law | Contract Law Problem Question Summary Notes (157 pages) |