What is the ratio in The Achilleas?

Parties are only liable for losses of a type for which they can reasonably be taken to have assumed responsibility, considering the contract's context and commercial background.

What did the court decide in The Achilleas?

The House of Lords held that charterers were not liable for owners' loss of profits on a follow-on charter as they had not assumed responsibility for such losses.

Why is The Achilleas important for contract law?

It restricts the scope of recoverable damages in commercial contracts by requiring parties to have assumed responsibility for the type of loss claimed, limiting The Heron II principle.

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