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When industrialization covered British trees with soot, moths with darker coloring became more numerous. When pollution was reduced again, lighter colored moths became more numerous. This situation illustrates the process of
Hadley v. Baxendale
A landmark English court decision from 1854 that established the principle for determining damages in breach-of-contract cases, emphasizing foreseeability of damages.
Restitution
A legal principle requiring a party who has unlawfully benefited at the expense of another to compensate the aggrieved party.
Lost Profits
Represent potential earnings that were not realized due to a breach of contract or other wrongful act.
Out-of-Pocket Rule
A legal principle used to calculate damages based on the actual direct losses and costs incurred by a plaintiff.
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