The dicta of Lord Diplock quoted provides the foundation for the modern approach respecting assessment of damages on an undertaking using contractual damage principles. Of course it is trite that damages for breach of contract are recoverable pursuant to the rule in Hadley v. Baxendale (1854), 9 Exch 341, i.e., that all loss caused by the contractual breach is recoverable subject to foreseeability. Subsequent jurisprudence in the United Kingdom, Australia and Canada has elucidated the approach in Hoffmann.
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