Remoteness of damage is an interesting principle especially when analyzing two specific cases. They are apparently allocated in different areas of law, functioning in England and Wales. In first case claimant is Overseas Tankship (UK) Ltd and brings a sui

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Remoteness of damage is an interesting principle especially when analyzing two specific cases. They are apparently allocated in different areas of law, functioning in England and Wales. In first case claimant is Overseas Tankship (UK) Ltd and brings a suit against Morts Dock and Engineering Co Ltd.1 The case lays down principles relating to negligence in law of tort, more precisely remoteness of damage. Second case Hadley v Baxendale2 is sequentially leading case on remoteness of damage in contract law. This principle links these two cases together and also demonstrates differences between them. According to Oxford dictionary of law3 remoteness of damage is "the extent to which a defendant is liable for the consequences of his wrongful act or omission." Cases mentioned above will be presented in light of this significant principle, which limit the types of loss that are recoverable.

First of all the facts of the cases are relevant to present principles in area of tort and contract law. The Wagon Mound No 11case is about the defendant's vessel, The Wagon Mound. It discharged furnace oil into Sydney Harbour. The wind and tide carried the oil beneath Claimant's wharf where on by Claimant's employees welding operations were