The document discusses the argument for the guideline established in the 1854 court case Hadley v. Baxendale. It states that the primary argument is based on the "least cost hypothesis" which aims to allocate liability to whichever party is in the best position to prevent damages at the lowest cost. It notes that the carrier in Hadley v. Baxendale could not reasonably foresee special damages from a delay in delivery, so holding them liable for all damages would incentivize excessive precautions. The document then provides a brief overview of some additional arguments before concluding that the Hadley rule aims to promote efficient outcomes.