What is the test for damages arising from a breach of contract?

British Columbia, Canada


The following excerpt is from Paddon v. Phillips Barratt Kaiser Engr. Ltd., 1987 CanLII 2438 (BC SC):

Now, looking at the rule in Hadley v. Baxendale that I have just cited, there appear to be two aspects. One relates to damages which naturally and generally flow from a breach of contract, and the other is damages arising from special circumstances surrounding that contract.

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