What is remoteness test?

What is remoteness test?

The term remoteness refers to the legal test of causation which is used when determining the types of loss caused by a breach of contract or duty which may be compensated by a damages award.

What is the test for remoteness of damage in contract?

Following the Wagon Mound no 1 the test for remoteness of damage is that damage must be of a kind which was foreseeable. Once damage is of a kind that is foreseeable the defendant is liable for the full extent of the damage no matter whether the extent of the damage is foreseeable.

What is remoteness of damages in contract?

The term ‘remoteness of damages’ refers to the legal test used for deciding which type of loss caused by the breach of contract may be compensated by an award of damages.

What is remoteness of damage in negligence?

Causation and remoteness of damage. 7.25 A person cannot be liable for damages for failure to take care to prevent personal injury or death unless negligent conduct on his or her part (whether act or omission) caused the harm, and unless that harm was not too ‘remote’ from the negligent conduct.

Why is it necessary to have a test for remoteness in negligence actions?

As with the policy issues in establishing that there was a duty of care and that that duty was breached, remoteness is designed as a further limit on a cause of action to ensure that the liability to pay damages is fairly placed on the defendant.

What is the remoteness rule?

In law, the term ‘remoteness’ refers to the test of causation which is used to determine the type of loss caused by a breach of contract. Damage which is too remote is not recoverable, even if there is there is clear causation between the breach of contract and the loss.

What is the reasonable foreseeability test?

“Foreseeability” refers to the concept where the defendant should have been able to reasonably predict that it’s actions or inaction would lead to a particular consequence. Therefore, when asking whether an employer owed its employee a duty of care, we can’t rely on the benefit of hindsight.

What is the test of reasonable foresight?

The test of reasonable foresight means that the liability of the defendant extends only to those consequences, which could have been foreseen by a reasonable man.