Extraordinary losses = losses which do not arise naturally and thus are not reasonably foreseeable. They are considered remote and a defendant will not be liable for them. A defendant however will be liable for extraordinary losses if it had particular or specific knowledge that these losses are likely to occur in the case of a breach. In the case of actual knowledge by the defendant of the special circumstances, he will be liable for extraordinary losses. Thus, they are based on the actual knowledge of the defendant.
In this case, the loss the Plaintiff suffered from being unable to enter the lucrative contract – the court that this was not a natural loss. Thus, it required the Defendant to have actual knowledge of it before it could be held liable. The Defendant had no actual knowledge of the possibility of this contract, and could not have reasonably foreseen that its breach would cause this loss. The defendant therefore not liable
