plaintiff could recover the loss under the 2nd limb as the defendants knew that

Plaintiff could recover the loss under the 2nd limb

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plaintiff could recover the loss under the 2nd limb as the defendants knew that the plaintiffs wanted a furnace which could withstand a certain temperature. In Bank Bumiputra Malaysia Bhd, Kuala Terengganu v Mae Perkayaan Sdn Bhd & Ors (SC) [1993] , the SC held that the measure of damages for breach of contract in s.74 is the same as England. So, some following cases did not refer to s.74 but used the test in Hadley v Baxendxale [1854] instead, i.e. SC in Elkobina (M) Sdn Bhd v Mensa Mercantile (Far East) Pte Ltd (SC) [1994] . In Lloyd v Stanbury , the court held that it was not within a reasonable contemplation of the parties that the property will be renovated before contemplation of the transfer of the property, even when the keys were given. (this is QOF). 3. Mitigation The Explanation to s.74 provides that in estimating the loss or damage arising from a breach of contract, the means taken to remedy the inconvenience caused by the non-performance of the contract must be taken into account. This means that the plaintiff must mitigate his loss and the principles in mitigating substantially follow those in the English Law which are summarised as follows: (a) The plaintiff must take reasonable steps to mitigate his loss and must now incur unreasonable expenses in doing so. (b) If the plaintiff fails to mitigate his loss, it does not mean that he incurs liability and is barred from suing. It means that he cannot recover only that part of the loss which is caused by his failure to mitigate. (c) If the plaintiff mitigate his loss by taking reasonable steps but does not incur any loss, then the loss cannot be recovered. (d) If the plaintiff mitigates his loss by taking reasonable steps and still incurs losses and extra expenses, then these losses/ expenses can be recovered. ( you cannot intendedly causing more losses by knowing that you will be compensated anyway ) In British Westinghouse Electric Co Ltd v Underground Electric Railways [1912], the defendants supplied to the plaintiffs, turbines which were of lower capacity than what was agreed to. The plaintiff suffered losses. The plaintiffs then substituted them with new turbines which gave more power. They made more profits than expected. The plaintiffs then sued the defendants for earlier losses suffered. The court held that the plaintiffs had mitigated their losses. However, there was no net loss as to the losses were set off the extra gains. Thus, the plaintiff could not recover the losses. The court also said that: (a) If the plaintiff fails to mitigate his loss, it does not mean that he incurs liability and is barred from suing. It means that he cannot recover only that part of the loss which is caused by his failure to mitigate. (b) The standard of burden to prove on the plaintiff in taking reasonable steps to mitigate is not too high. He is only required to do what a reasonable man would have done in the ordinary
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course of business. Therefore, the plaints is not required to take complicated steps or to sacrifice his property or his rights, i.e he need not take unwarranted risks.
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