heart. Damages that are too removed from the negligence and breach of duty, may be denied recovery on the basis of remoteness. Damages in contract law can be defined as a sum of money paid to the innocent party in compensation for a breach of contract. CAUSATION (CAUSATION OF FACT) THE ‘BUT FOR’ TEST. Additional Factors. Causation is established by proving that the defendant’s breach of duty, as a matter of fact, a cause of the damage. It is a concept which has been widely debated, and to … Tort Law Negligence –Causation & Remoteness © The Law Bank Tort General principles –Causation and Remoteness 1 Torts (Laws1012) Uploaded … When considering a claim for damages (see Practice Note: Contractual damages—general principles and related content), the court will consider the principles of causation and remoteness. In some instances, the rules causation and remoteness rules in equity are interpreted in light of existing common law models of compensation. However, the principles governing common law and equitable recovery are not as different as the courts claim. In construction disputes, all parties including claimants, defendants, independent assessors, experts, adjudicators, arbitrators or judges have to deal with causation during the course of their role. Course. The principle of ‘remoteness of damages’ was articulated in "Hadley v Baxendale" [1843 All ER Rep 461] in 1853. Damages for breach of contract are subject to the principles of remoteness , causation and mitigation . University of Sydney. Remoteness of damage is often thought of as an aspect of causation, and we will consider it in that context. Causation requires both legal, and factual causation. Causation and remoteness of damage are dealt with in paragraphs 7.25-7.51. Causation & remoteness of damages. That is generally an inclusive principle: if losses of that type are foreseeable, damages will include compensation for those losses, however large. Examples of non-compensatory damages include nominal damages, aggravated damages, restitutionary damages and account of profits. Remoteness of damage focuses on the type or kind of damage which must be contemplated by the defendant. Facts: The defendants carelessly exposed their employee, a van driver (the claimant), to extreme cold in the course of his duties.The claimant suffered frost bite as a result. ... the claimant must show that the breach of contract caused the loss. It doesn’t rely on: the type of breach that would take place to cause it In deciding the issue the judge found it necessary to embark on a detailed consideration of the authorities on collateral benefits and mitigation in damages and helpfully summarised the relevant principles. Remoteness of damage. Causation is one of the topics rarely discussed but plays a key role when dealing with commercial disputes. A party's duty to mitigate its loss is dealt with in Practice Note: Mitigation in contractual breach claims. 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