Causation and Remoteness

Question 1

What must C prove to recover damages?

Answer 1

1. Suffered loss as a result of the defendant’s breach
2. Loss is not too remote

Burden is on D to prove C failed to mitigate (C has a duty to mitigate)

Question 2

Remoteness rule

Answer 2

GR: A party will not be awarded damages for loss which is too remote a consequence of the breach

Question 3

What is limb 1 remoteness?

(i.e. not too remote)

Answer 3

Usual loss arising naturally from breach

(D has imputed knowledge and not too remote)

e.g. ordinary profits

Question 4

What is limb 2 remoteness (not too remote)

Answer 4

Loss in reasonable contemplation of parties as a probable result of breach at the time the contract was made

requires actual knoweldge of lucrative contract