Paralleling the technological progress found in other segments of society, the computer has revolutionized the banking industry by enabling funds to be transferred electronically. Electronic Fund Transfers (EFTs) have replaced numerous conventional uses of the check because computer transfers are a more efficient, convenient, and less costly method of transferring funds. The prevalence of EFT systems, however, raises difficult legal issues stemming from the new relationships among the participants and from the possible errors that can occur. A Seventh Circuit decision, EVRA Corporation v. Swiss Bank Corporation, highlights the legal problems involved when a party incurs a loss of profits from a cancelled contract as a result of a bank failing to transfer funds when requested by wire to do so. This Note discusses the court's use of Hadley v. Baxendale to limit the injured party's recovery for lost profits.
Larry D. Hause,
An Economic Approach to Hadley v. Baxendale: EVRA Corporation v. Swiss Bank Corporation, 673 F.2d 951 (7th Cir. 1982),
62 Neb. L. Rev.
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