... The plaintiff asked for damages based on the price he could have obtained if the sugar had been delivered on time. The subject-matter of the action was the difference in price amounting in total to £4,101 16s. 8d. The appellant did not know that the intention of the respondent was to sell the cargo immediately after arrival, but was aware that there was a well-known sugar market in Basrah. Lord Reid stated: "the crucial question is whether, on the information available to the defendant when the contract was made, he should, or the reasonable man in his position would, have realized that such loss was sufficiently likely to result from the breach of contract to make it proper to hold that the loss flowed naturally from the breach or that loss of that kind should have been within his contemplation."1 Application of the rule(s) The most apparent problem for the respondent was the ...

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