📜 BAR Exam Prep

Consequential damages (Hadley v. Baxendale) are recoverable if:

A All losses are covered automatically
B They were reasonably foreseeable at the time of contracting
C The plaintiff did not know about them
D They are punitive in nature

✓ Correct Answer: Option B

Hadley v. Baxendale: consequential (special) damages must have been reasonably foreseeable by the breaching party at contract formation.

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