This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
If the party in default knows that a certain course of circumstances is probable, but does not know that such course of circumstances will positively follow he is not liable, if such course •of circumstances comes to pass, for the loss which arises by reason thereof.1 Thus A agreed to sell oil to B to be delivered at a certain place. A knew that it was probable that B would use some means of transportation for such oil, but he was not positively advised of such fact. On breach, A was held liable to B for the difference between the market price and the contract price; but not for expenses incurred by B in hiring oil-cars, nor for B's loss of trade.2 So an employer who renounces in advance a contract of employment, by the terms of which the employe, in addition to his salary, has the right to buy goods from his employer at wholesale prices, is not liable in damages for the difference between the wholesale and retail price of the goods which such employe would probably have bought.3
6 Serfling v. Andrews, 106 Wis. 78; 81 N. W. 991.
7 Cleveland, etc., Ry. v. Patton, 203 111. 376; 67 N. E. 804; affirming 104 111. App. 550; Cutting v. Ry., 13 All. (Mass.) 381; Sloop v. R. R., 93 Mo. App. 605; 67 S. W.
956; Ward v. R. R., 47 N. Y. 29; Devereux v. Buckley, 34 O. S. 16; 32 Am. Rep. 342.
1 Globe Refining Co. v. Oil Co., 190 U. S. 540.
2 Clobe Refining Co. v. Oil Co., 190 U. S. 540.