Not every loss will be recoverable in tort law. Transfield chartered a ship, the Achilleas, from its owners, Mercator. 39 Pages Posted: 12 Jun 2012. 16-2 Contributory Negligence i) Davies V. Mann ii) Butterfield V. Forrester iii) British India Electric Co. V. Loach Ch. However, the same may be traced in contract. Add Paper to My Library. Fairness and Remoteness of Damage in Contract Law: A Lexical Ordering Approach Max Harris* I INTRODUCTION Views on the new approach to remoteness of damage in contract law laid down by a majority of the House of Lords in The Achilleas1 have been sharply divergent. REMOTENESS OF DAMAGE 295 hiring charges because "the appellant'slg actual loss insofar as it is due to their impecuniosity arose from that impecuniosity as a separate and concurrent cause, extraneous to and distinct in character from the tort".20 This presumably was not the case with the lost contracts. Remedies are permanent injunctions, interim injunctions (until full trial has happened) and damages for injury to reputation. Remoteness of Damages and Judicial Discretion measure of damages is the same as in an action for breach of contract. remoteness – 1and its conceptually similar US counterpart, unforeseeability of damage – were abruptly revealed when, in The Achilleas, 2 the House of Lords departed from the over 150-year old precedent of Hadley v Baxendale. Re. We are looking for consequences that could be in the reasonable contemplation of the defendant. The principle of remoteness aims to prevent claims for losses that are too remote from the breach (Murray, 2014). FACTS The Achilleas, a bulk carrier owned by Mercator, was let under a time charter dated 22 January 2003 to Transfield for about five to seven months at a daily hire rate of US$13,500. – Damage or loss must either arise naturally from breach (i.e. 15 Remoteness of Damage i) Scott V. Shepherd ii) Re Polemis and Furnace Ltd. iii) Wagon Mound case iv) Hughes V. Lord Advocate v) Haynes V. Harwood Ch. A person is liable for the Doctrine of the remoteness of damages in the law only when his wrongful conduct is directly related to the effect of his action. PART II: Remoteness of Damage in Tort and in Contract. See all articles by Rahul Prakash Deodhar Rahul Prakash Deodhar. We could, of course, just abandon any attempt to … The Privy Council started its analysis by looking back over 150 years to the two-limb test established in Hadley v Baxendale (1854) 9 Exch 341, which remains the bedrock in this area. Hadley v Baxendale remoteness is generally regarded favourably in the law and economics literature. Orthodox theory views remoteness as an efficient rule, although its purported efficiency virtues vary. Meaning by it that a person can Institute a suit for the damages against another person under the law of torts only when the connection between the wrongful acts and injury is direct. Back to lecture outline on remoteness of damage in Tort Law . In most cases matters related to damage refer to tort. It is the type of harm that must be foreseeable, not its extent. Tests for cause in law encompass a remoteness test (which involves establishing whether the damage that occurred was foreseeable to the defendant at the time of the negligence). REMOTENESS OF DAMAGE IN CONTRACT AND TORT: A RECONSIDERATION JOHN CARTWRIGHT* THE starting point for any rule of remoteness of damage is the familiar notion that a line must be drawn somewhere: it would be unacceptably harsh for every tortfeasor or contract breaker to be responsible for all the consequences which he has caused. 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