Seymour Hicks, a well-known actor and theatrical manager, invited women to submit their photographs to compete in a beauty contest where the winners would be chosen by the readers of one newspaper.
Ms Chaplin submitted her photograph and came first in her section, which entitled her to be considered for one of the twelve finalists.
The notice reached her too late, and she was not able to make the appointment with Mr Hicks.
She sued Mr Hicks for damages for breach of contract to compensate her for the loss of a chance to be selected for an engagement.
Vaughan Williams LJ dismissed the arguments that the damages were either (1) too remote or (2) unassessable.