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in that the term "foreseeability" was employed. He emphasised that he would use the words ‘not unlikely’ as denoting a degree of probability considerably less than an even chance but nevertheless not very unusual and easily foreseeable. He emphasised that the tests in tort and contract were very
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The House of Lords held that the loss was not too remote. They stated that the test for remoteness in contract is narrower than it is in tort. While in tort any damage of a type which is reasonably foreseeable can be claimed, Lord Reid ruled that, in contract, the defendant must ought to have
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different, on the basis that where there is a contract the parties will have had the opportunity to apportion their liabilities already. Therefore, the test for remoteness should be less generous than in tort, where consequential losses must be very remote to preclude compensation.
142:. It was nine days late. The sugar price had dropped from £32 10s to £31 2s 9d. Koufos claimed the difference in the loss of profit. Czarnikow knew there was a sugar market, but not that Koufos intended to sell it straight away.
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realised that the loss was 'not unlikely to result from the breach of contract'. A higher degree of probability is needed for the loss to be in the contemplation of the parties. Lord Reid disapproved of
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Lord Morris, Lord Hodson, Lord Pearce and Lord Upjohn were generally approving of
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case, concerning remoteness of damage. The House of Lords held that the "
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1 AC 350, 3 WLR 1491, 3 All ER 686, 2 Lloyd’s Rep 555
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Victoria
Laundry (Windsor) Ltd v Newman Industries Ltd
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Parsons (Livestock) Ltd v Uttley Ingham & Co Ltd
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South
Australia Asset Management Co v York Montague
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134:Koufos chartered a ship (the Heron II) from
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36:. Heron II arrived there 9 days late.
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138:to bring 3,000 tons of sugar to
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243:English implied terms case law
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120:English contract law
176:Hadley v Baxendale
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124:remoteness
100:Remoteness
136:Czarnikow
72:Lord Reid
194:1 QB 791
186:2 KB 528
169:See also
146:Judgment
94:Keywords
58:Citation
32:Port of
210:UKHL 48
50:Decided
215:Notes
140:Basra
130:Facts
42:Court
34:Basra
86:and
112:or
234::
82:,
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74:,
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