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Contracts often limit the losses recoverable for a default, for example saying that those which are “indirect” or “consequential” are not recoverable. Where is the line to be drawn? If the contract is governed by the law of England and Wales, a court or arbitral tribunal will probably get some help from seeing what might be allowed in law in a comparable situation for damages for breach of contract.
His Honour Humphrey LLoyd QC and Jennifer Jones discuss the topic of where to draw the line in contractual claims in their article in Who’s Who Legal: Construction 2016.
