Hadley (2 pages)

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Hadley



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Hadley

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lecture 17


Lecture number:
17
Pages:
2
Type:
Lecture Note
School:
Cornell University
Course:
Econ 4040 - Economics and the Law
Edition:
1

Unformatted text preview:

Econ 4040 1st Edition Lecture 17 Outline of Last Lecture I Transatlantic II Shirley Maclaine Outline of Current Lecture III Hadley IV Walgreen Hadley Brief Fact Summary Plaintiffs operated a mill and a component of their steam engine broke causing them to shut down the mill Plaintiffs then contracted with Defendants common carriers to take the component to W Joyce Co to have a new part created When delivery was delayed due to Defendants neglect causing Plaintiffs mill to remain closed longer than expected Plaintiffs sued to recover damages Synopsis of Rule of Law The damages to which a nonbreaching party is entitled are those arising naturally from the breach itself or those that are in the reasonable contemplation of the parties at the time of contracting Facts Plaintiffs operated a mill which they were forced to shut down when the crank shaft of their steam engine broke They contacted the manufacturer of the engine W Joyce Co Joyce and Joyce agreed to make a new shaft from the pattern of the old one Therefore a servant of Plaintiffs went to the office of Defendants common carriers to have the crank shaft taken to Joyce Plaintiffs servant told Defendants clerk that the mill was shut down and the shaft must be sent immediately The clerk informed Plaintiffs servant that if the shaft were given to them by twelve o clock any day it would be delivered by the next day Plaintiffs took the shaft to Defendants the next day before noon Due to Defendants neglect the delivery to Joyce was delayed and Plaintiffs did not receive the new shaft for several days after they should have received it Issue Are Defendants liable to Plaintiffs for damages suffered by Plaintiffs due to lost profits Held No A nonbreaching party is entitled damages arising naturally from the breach itself or those that are in the reasonable contemplation of the parties at the time of contracting Here while the breach by Defendants was the actual cause of the lost profits of Plaintiffs it cannot be said that



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