Multiple choice

Principle of law in Hadley V Baxendae related to:

  1. Quasi - Contract

  2. Fraud

  3. Special Damages

  4. Unjust Enrichment
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C Correct answer
Explanation

Hadley v Baxendale (1854) established the principle of 'special damages' or 'consequential damages' in contract law. It held that a party can only recover damages that were reasonably foreseeable at the time of contract formation or that arise from special circumstances made known to the party in breach. This 'foreseeability test' limits liability for remote consequences.

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