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  • Read the given passage very carefully and answer the question. The term ‘remoteness of damages’ refers to the legal test used for deciding which type of loss

Read the given passage very carefully and answer the question.

The term ‘remoteness of damages’ refers to the legal test used for deciding which type of loss caused by the breach of contract may be compensated by an award of damages. It has been distinguished from the term measure of damages or quantification which refers to the method of assessing in money the compensation for a particular consequence or loss which has been held to be not too remote.

The rules on the remoteness of damage in the contract are found in the Court of Exchequer’s judgment in Hadley v Baxendale, as interpreted in later cases. In Hadley v Baxendale, the plaintiff’s mill had come to a standstill due to its crankshaft breakage. The defendant carrier failed to deliver the broken crankshaft to the manufacturer within the specified time. There has been a delay in restarting the mill. The plaintiff sued to recover the profits they would have made if the mill was started without delay. The court rejected the claim on the ground that the mill’s profits must be stopped by an unreasonable delay in the carrier’s delivery of the broken shaft to the third person. That rule, expressly and carefully framed, to be guided to judges in directing juries, was as follows:

Where two parties have entered into a contract which one of them has broken, the damages which the other party should be entitled to receive in respect of such breach of contract should either be deemed to have arisen naturally, fairly, and reasonably, i.e. according to the usual course of things, from such breach of contract itself or as might reasonably have been deemed to have arisen in the contemplation of the contract. Now, in the particular circumstances under which the contract was actually concluded were communicated by the plaintiff to the defendant and thus known to both parties, the damages resulting from such a breach of contract that they would reasonably contemplate would be the amount of injury that would normally result from a breach of the contract, under these special circumstances were wholly unknown to the party breaking the contract, he could, at most, only have had in his contemplation the amount of injury that would generally arise from such a breach of the contract and in the great multitude of cases not affected by any special circumstances.

Question

 Anmol is a stevedore who agrees with Bachan Singh, a shipowner, to discharge his ship’s cargo, and Bachan Singh contracts to supply all necessary chains reasonably fit for that purpose. One chain supplied by Bachan Singh is defective and breaks while in use, hence ‘SANAM’, a worker of Anmol, is hurt. ‘SANAM’ sues Anmol, and the suit got settled by paying ‘SANAM’ compensation that is admitted to be reasonable. Here-

 

Option: 1

Bachan Singh is liable to compensate Anmol for the compensation that Anmol paid to ‘SANAM’

 


Option: 2

Bachan Singh is not liable to compensate Anmol for the compensation that Anmol paid to ‘SANAM’


Option: 3

Bachan Singh is liable for the defective chain but not for compensation that Anmol has to pay for his worker

 


Option: 4

Sanam cannot claim compensation because he got hurt in an accident

 


Answers (1)

best_answer

The liability on the person who has committed a breach which may fairly and reasonably be considered as arising naturally from the breach. It is assumed for the purpose that a reasonable vendor understands the ordinary business practices and exigencies of his buyer’s trade or business without the need for any special discussion or communication. Therefore, Bachan Singh is liable to pay the compensation also along with damages for the defective cha

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Pankaj Sanodiya

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