Breach of Contract Hadley vs Baxendale

In: Business and Management

Submitted By comwhiz
Words 910
Pages 4
BREACH OF A CONTRACT

Hadley vs Baxendale.
About the Companies.
Hadley carried out an extensive business as millers. Their business was stopped due to a breakage of the crankshaft on which the whole mill worked. They gave the crankshaft carrying order to Baxendale , a carrier company. But due to some reasons the delivery of the crankshaft was delayed by the carriers and because of that the plaintiffs(Hadley) had to incur losses. The plaintiffs claimed that the defendants(Baxendale) should pay them for the special damages as well since it was because of the delay of the delivery that they had to incur huge losses.

Case
Scene 1
Mr Hadley() (calling Mr Baxendale on phone ): Hello Mr Baxendale, this is Mr hadley speaking.
Mr Baxendale() : Hello, Mr Hadley, good to hear from you. I hope you have got your delivery of the crankshaft by now.
Mr Hadley : Yes Mr Baxendale, I have got the delivery. But I am afraid to say that it was late by three days!! And because of that, my company could not operate for all this duration and had to suffer huge losses because of that.
Mr baxendale : I am really sorry to hear that Mr Hadley.
Mr Hadley : U had signed the contract for carrying the shaft in three days and I think you must pay us for the losses we have suffered because of your negligence in the delivery of the crankshaft.
Mr Baxendale : Mr Hadley, We had signed the contract but I Do not think we should be paying for your losses. After all we carriers and we did our duty!!!
Mr Hadley : I am afraid then I will have to take you to the court for this
Mr Baxendale : I am ready for it Mr Hadley, See you at the court then!!!

Scene 2 (Court Room)
Judge(: Let us start the proceedings for the day. (Lawyer for Baxendale) : So, Company A(Hadley), what are your claims?
: My company suffered huge losses because of the negligence in the delivery of the crankshaft by…...

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