Remoteness in contract: Under revision in the House of Lords too?

dc.contributor.authorHutchison, Andrew
dc.coverage.spatial199-209en_ZA
dc.date.accessioned2016-08-23T14:01:45Z
dc.date.available2016-08-23T14:01:45Z
dc.date.issued2012-06-01
dc.description.abstractThis note discusses a 2008 House of Lords decision on the proper test for remoteness of contractual damages following a breach of contract. In The Achilleas, Lord Hoffmann set out a test for remoteness which varied slightly from the traditional Hadley v Baxendale test of foreseeability entrenched in Common Law countries world-wide. Lord Hoffmann’s test draws on the broader context of an agreement, including whether there was a tacit assumption of risk by one of the parties, as well as standard norms in the industry in question. Although the Court was not unanimous in The Achilleas, this represents a significant departure from settled law. In South Africa, our Supreme Court of Appeal has favoured a ‘contemplation’ (foreseeability) test over a ‘convention’ (assumption of risk) one. In an important decision in 2001, however, this Court gave an obiter indication that it may also in future revise our foreseeability test in favour of a more flexible one, in line with other branches of the law of obligations. Lord Hoffmann’s decision is thus of relevance in demonstrating comparative trends in development of the law of remoteness of damage.en_ZA
dc.identifier.apacitationHutchison, A. (2012). Remoteness in contract: Under revision in the House of Lords too?. <i>South African Law Journal</i>, http://hdl.handle.net/11427/21468en_ZA
dc.identifier.chicagocitationHutchison, Andrew "Remoteness in contract: Under revision in the House of Lords too?." <i>South African Law Journal</i> (2012) http://hdl.handle.net/11427/21468en_ZA
dc.identifier.citationAndrew Hutchison ‘Remoteness in contract: Under revision in the House of Lords too?’ (2012) 129 SALJ 199.en_ZA
dc.identifier.issn0038-2388
dc.identifier.ris TY - Journal Article AU - Hutchison, Andrew AB - This note discusses a 2008 House of Lords decision on the proper test for remoteness of contractual damages following a breach of contract. In The Achilleas, Lord Hoffmann set out a test for remoteness which varied slightly from the traditional Hadley v Baxendale test of foreseeability entrenched in Common Law countries world-wide. Lord Hoffmann’s test draws on the broader context of an agreement, including whether there was a tacit assumption of risk by one of the parties, as well as standard norms in the industry in question. Although the Court was not unanimous in The Achilleas, this represents a significant departure from settled law. In South Africa, our Supreme Court of Appeal has favoured a ‘contemplation’ (foreseeability) test over a ‘convention’ (assumption of risk) one. In an important decision in 2001, however, this Court gave an obiter indication that it may also in future revise our foreseeability test in favour of a more flexible one, in line with other branches of the law of obligations. Lord Hoffmann’s decision is thus of relevance in demonstrating comparative trends in development of the law of remoteness of damage. DA - 2012-06-01 DB - OpenUCT DP - University of Cape Town J1 - South African Law Journal KW - Law KW - Contract KW - Damages KW - Remoteness LK - https://open.uct.ac.za PB - University of Cape Town PY - 2012 SM - 0038-2388 T1 - Remoteness in contract: Under revision in the House of Lords too? TI - Remoteness in contract: Under revision in the House of Lords too? UR - http://hdl.handle.net/11427/21468 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/21468
dc.identifier.vancouvercitationHutchison A. Remoteness in contract: Under revision in the House of Lords too?. South African Law Journal. 2012; http://hdl.handle.net/11427/21468.en_ZA
dc.languageengen_ZA
dc.publisherJutaen_ZA
dc.publisher.departmentDepartment of Commercial Lawen_ZA
dc.publisher.facultyFaculty of Lawen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.sourceSouth African Law Journalen_ZA
dc.source.urihttp://juta.co.za/law/products/3601-south-african-law-journal
dc.subjectLaw
dc.subjectContract
dc.subjectDamages
dc.subjectRemoteness
dc.titleRemoteness in contract: Under revision in the House of Lords too?en_ZA
dc.typeJournal Articleen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceArticleen_ZA
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