in the case of John Grimes Partnership v Gubbins, the courts considered whether a particular loss was 'reasonably foreseeable'. The general principle in Hadley v Baxendale is that a loss may be recovered if it is of a type which may fairly and reasonably be regarded as having been within the reasonable contemplation of the parties when the contract was entered into as the probable (or not unlikely) result of the breach. The principle is split into two limbs: First, losses which arise naturally, according to the normal course of things, from the breach of contract itself; or
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