The plaintiff sued Baxendale for relief of the lost profits. At trial court Hadley was awarded damages based on the lost profits. On the ground of misconduct, the defendants appealed the case. The question at hand was whether or not the defendant should be liable for lost profits had the special circumstances of the profits never been communicated.
Analyze:
Should the defendant, Baxendale be held liable for the damages the plaintiff, Hadley suffered due to the extra five day shut down. The first step that a court takes in choosing a remedy is to decide what interest it is trying to protect. An interest is a legal right to something, there are four interests; expectation, reliance, restitution, and equitable interest. In this case an expectation interest view is used to decide on a remedy. This refers to what the injured party reasonably thought they would get out of the contract. The goal of the court in this scenario is to put the injured party in the position they would be in if both parties had fully performed