The Empire ordered 2,000 drones from the Dark Side Company for $57,000. The good

Question

The Empire ordered 2,000 drones from the Dark Side Company for $57,000. The goods were to be delivered to the Empire by July 23 via a common carrier of Dark Side Company’s choosing. The contract never specified any shipping terms.   On July 18, Dark Side Company placed the goods on board Millennium Falcon Common Carrier. While in transit, Millennium Falcon Common Carrier was traveling 80 mph in a 50 mph area. As the carrier tried to make a sharp left turn, several of the boxes containing the drones fell over, causing some of the drones to break inside the boxes. On July 21, Millennium Falcon Common Carrier lost the goods. The Empire subsequently sued the Dark Side Company for breach of contract, but the Dark Side Company claims title had already passed to the Empire. Who wins and why? Include Source..

Explanation / Answer

Hadley v Baxendale sets the basic rule to determine consequential damages from a breach of contract: a breaching party is liable for all losses that the contracting parties should have foreseen, but is not liable for any losses that the breaching party could not have foreseen on the information available to him.

As per the judgement the defendant in breach of contract can recover damages from breaching party only when losses are generally foreseeable

in the preesent case , sale will be completed only posession of goods is made by seller to buyer, since transport has to be borne by seller on this own terms , seller has to take the responsibility of delivery of goods to buyer . goods damaged before delivery and contract is cancelled , dark side company has to pay damages to the empire for breach of contract.

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