What is the ratio in Victoria Laundry v Newman Industries?

Damages for breach of contract are only recoverable if they were reasonably foreseeable at the time of contract as a probable (not merely possible) consequence of breach.

What did the court decide in Victoria Laundry v Newman Industries?

The Court of Appeal awarded damages for normal business losses but not for the exceptionally profitable dyeing contracts, as these were not reasonably foreseeable to the defendant.

Why is Victoria Laundry v Newman Industries important for contract law?

It refined the remoteness test from Hadley v Baxendale by emphasizing that consequences must be probable, not just possible, establishing the modern approach to limiting contractual damages.

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