Remoteness, classification of terms, and penalty clauses

A ship returned ten days late and a lost sub-charter at double the market rate. The first limb is identical in both sittings; the second limb differs, so both are answered here — penalty clauses, and classification of terms.

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Problem questionTwo limbs — answer the one on your paperCommon law — no governing statute

Set in two of the last five sittingsBoth second limbs coveredDunlop, approved in O’Donnell v Truck and Machinery Sales

What this model answer covers

Sections in the full LawShortcut model answer:

Reading the question
Issue 1 — The compensatory principle
Issue 2 — Remoteness: the rule in Hadley v Baxendale
Issue 3 — The measure: which rate, and mitigation
Limb 2A (March 2026) — Term 5, classification and termination
Limb 2B (March 2024) — Liquidated damages or penalty?
Overall advice

Full model answer

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