In The Heron II

3 All E.R. 686 (House of Lords, 1967)

Dawson, p. 74-75

Facts: The plaintiff contracted with the defendant to deliver sugar to Basra. The defendant was late, and in the meantime, another vessel with sugar arrived in Basra, causing the market price to drop. The plaintiff sued for the difference between the amount that would have been received if the contract had been performed and the amount the plaintiff actually got.

Issue: Shall the plaintiff receive the requested damages?

Rule: If the loss is foreseeable, then it may be compensated.

Analysis: Law lords gone wild! They argue about how serious the risk of loss must appear at the time of contract in order to be considered foreseeable.

Conclusion: The trial court’s judgment was affirmed.

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