In the Canadian case Victoria Laundry v. Newman Ind. 2 K.B. 528 (CA 1949), the Laundry wanted a new dye machine, but it took several months longer to set up than the
contract stipulated.Damages were
awarded for "business profits", but not for unusual profits (such as
special jobs) that might have been realized if the equipment had been delivered
on time.
Court
ruled that what was reasonably foreseeable at the time depended on the knowledge of the various
parties.There are two types
of knowledge, imputed, and actual.Everyone, as reasonable people, are expected to know certain
things.However, in order to
make the contract break liable, it is not necessary that he should have
actually asked himself what loss is liable to result from such a
breach.It suffices if, had
he considered the question, would he, as a reasonable man, have concluded
the losses were likely to occur.