‘No damages if proven breach is not an effective cause of loss: “bitter truth” for innocent parties’

“In determining whether a breach of contract operates as an effective cause of the loss claimed, the court must apply ‘common sense’. Although there is a ‘moral asymmetry’ where one party is at fault and the other an innocent victim of wrongdoing, some breaches, however reprehensible, result in no loss that can be recovered by an award of compensatory damages …” (more)

[Ella Wardlaw, Allen and Overy: Compact Contract, 10 February]

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