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Hadley v. Baxendale | 9 Exch. 341 (1854)
Hadley owned a corn mill in Gloucester, England. The mill used a steam engine manufactured by W. Joyce & Company, which we’ll call Joyce & Company for short, to grind corn into flour and cornmeal. One day, the engine’s crank shaft broke. To get the engine running again, Hadley needed to ship the broken shaft back to Joyce & Company, so an exact replica of the part could be made as a replacement.

Hadley contacted Pickford & Company, or Pickford, a common carrier owned by Baxendale. Hadley paid Pickford to ship the broken shaft to Joyce & Company as quickly as possible. Pickford promised to deliver the part by the next day. However, due to Pickford’s negligence, the delivery took much longer than promised. As a result, the mill remained closed for five additional days.

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