What is the test for remoteness in a contract?

Alberta, Canada


The following excerpt is from Stan's Power Tong Service v. Argus Machine Co., 1986 CanLII 1981 (AB QB):

It would seem though that the proper matter of a test for remoteness is in the case of Hadley v. Baxendale (1854), 9 Ex. 341; 156 E.R. 145: "Where two parties have made a contract which one of them has broken, the damages which the other party ought to receive in respect of such breach of contract should be such as may fairly and reasonably be considered either arising naturally, i.e., according to the usual course of things, from such breach of contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties, at the time they made the contract, as the probable result of the breach of it."

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