AUDIO Case Study – Consequential Damages and Foreseeability – Hadley vs Baxendale

Description

In this episode of “IAX World of Contracts,” we explore the famous case of Hadley v. Baxendale (1854), which established the rule of foreseeability in contract law. This case introduced the principle that a party can only recover damages that were foreseeable at the time the contract was made. The episode provides a deep dive into the legal concepts of general and consequential damages and explains how this ruling continues to shape modern contract management, risk communication, and damage limitation.

This episode is ideal for:

• Contract managers looking to understand the distinction between direct and consequential damages.
• Business professionals interested in how to manage risk in contracts and communicate critical terms.
• Legal professionals seeking insights into the foundational principles of foreseeability in contract law.

By the end of this episode, you’ll have a clear understanding of how to approach contract negotiations with a focus on communicating risk, limiting liability for consequential damages, and ensuring that recoverable losses are foreseeable. Hadley v. Baxendale remains a cornerstone case in managing breach of contract claims and defining the limits of liability.