Uniform Bar Examination (UBE)

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Consequential (special) damages in a contract action are recoverable under the rule of Hadley v. Baxendale only if they were:

Actually foreseen by the breaching party at the moment of breach Directly and naturally caused by the breach without any intervening cause Expressly identified and described in the contract itself Foreseeable as a probable result of breach at the time the contract was formed

Correct Answer:

Foreseeable as a probable result of breach at the time the contract was formed

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