Trade Usage And Disclaiming Consequential Damages: The Implications For Just-in-time Purchasing

摘要

forming delivery. These risks often are not expressly allocated by the parties, either because they have no written contracts at all or because the negotiations or the resulting written contracts, are incomplete. Moreover, the traditional foreseeability analysis of Hadley v. Baxendale does not fit the economic reality of JIT production management, nor does it accord with a reasonable allocation of risks between the parties or with the parties' reasonable expectations arising from trade usage. Hence, courts need to enforce the contractual allocation of risks made by JIT contracting parties, including those risk allocations that result from trade usage.