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Czarnikow Ltd v Koufos (The Heron II) [1969] 1 AC 350

A contract for the carriage of a cargo of sugar was delayed by 9 days. The market price of sugar dropped following this delay due to the arrival of another cargo of sugar. The claimant sought to recover the difference from the defendant for their breach of contract. The defendant argued the damages were too remote since it was just as likely that the market price could increase.

Held:

Under the second limb in Hadley v Baxendale it was only necessary that the losses were in the reasonable contemplation of the parties as a possible result of the breach. There was no requirement as to the degree of probability of that loss arising. Since the defendant must have known that market prices fluctuate, the loss would have been in his contemplation as a possible result of the breach.


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