Rule Of Reasonable Foreseeability On Breach Of Contract

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he Rule of Reasonable Foreseeability on Breach of Contract Introduction Contracts are often signed by individuals or corporations daily, but it is unlikely that every individual and every company is able to sign a thorough contract without any errors and losses, and to perform their liabilities ruled by contract completely . When one party breaches their contract, the party shall compensate the other party damages . Therefore, default rules play a key role in tackling contract disputes .The rule of foreseeability, which is one of primary default rules , mainly aims to limit the contractual responsibility of the breaching party. Supposedly, the primary reason of defaulting contract is that a complete contingent contract may not be made by contractual parties, and it is the failure of such contingent contract that results in the lack of foreseeing, the lack of balancing information or even expensive contracting fees . In such case, the rule of foreseeability will exert its influence to confirm how the breaching party pays money to the injured party. The rule of foreseeability generally defines that when one party breaches the contract and causes the damages, the breaching party is liable to compensate to the injured party in a foreseeable scope of losses . Specifically, an injured party only can ask for damages which are naturally caused by the breach or may be deduced in tacit consent by the parties at the making contract time. This rule derives from a classic case: Hadley

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