Under the rule in Hadley v Baxendale, which of the following must be satisfied before damages will be awarded for loss?
(i)
The loss must arise naturally from the breach
(ii)
The loss must arise in a manner which the parties can reasonably be assumed to have contemplated as the probable result of a breach
The correct answer is: Both (i) and (ii).
These are the two rules of remoteness of damage.
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