To be liable for consequential damages, the breaching party need not know nor have reason to know that the breach will cause special damages to the other party.

Question

Quizplus · Accepted Answer

For a party to be liable for consequential damages, the breaching party must have known or had reason to know at the time of contract formation that special damages would result from the breach. This is based on the foreseeability principle established in Hadley v. Baxendale.

To Be Liable for Consequential Damages, the Breaching Party Need