Rethinking the Law of Contract Damages
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Rethinking the Law of Contract Damages

Victor P. Goldberg

In this series of chapters on contract damages issues, Victor P. Goldberg provides a framework for analyzing the problems that arise when determining damages, and applies it to case law in both the USA and the UK.
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Chapter 7: Contract damages when there are sub-sales, UK

Victor P. Goldberg

Abstract

When A sells to B and B sells to C, should the BC contract (the sub-sale) be taken into account when reckoning A’s liability to B? In Rodocanachi v Milburn, a case involving non-delivery, the English court said No. However, it carved out an exception for string contracts in Hall v Pim. In Bence Graphics v Fasson, the court recognized the sub-sale. This chapter argues that this is a mistake, that courts should ignore the sub-sales, regardless of how closely linked they are to the contract being litigated.

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