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Exercises · Q6

Q.Distinguish between ordinary (general) damages and special damages.

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Ordinary (general) damages compensate for the loss that naturally and directly results from the breach, in the usual/ordinary course of events — this is the loss any reasonable person in the parties' position would expect to flow from such a breach, and is recoverable without needing to prove the other party had any special knowledge.

Special damages compensate for loss that arises from special or unusual circumstances specific to that particular contract — for example, a loss of profit on a special sub-contract that depended on timely delivery. Special damages are recoverable only if those special circumstances were made known to, and were within the contemplation of, both parties at the time the contract was made; if the party in breach had no knowledge of the special circumstances, they cannot be held liable for the resulting special loss. …

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