SESSION 05 - DISCHARGE OF CONTRACT.pdf

In fact the defendant took a week to deliver this

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In fact the defendant took a week to deliver. This caused the mill to remain idle for longer than necessary. The plaintiffs claimed for loss of profits caused by the defendant's delay. 37 b. REMEDIES FOR BREACH OF CONTRACT
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Held : The plaintiffs cannot recover the loss of profits because the carrier did not know that the mill would have to stand idle if there was any delay. And according to the usual course of things, the absence of a shaft will not cause the mill to remain idle because the plaintiffs may have had a spare shaft. The special circumstance that the mill will remain idle was not known to the defendant and therefore it could not be in the contemplation of the parties at the time of making the contract. 38 b. REMEDIES FOR BREACH OF CONTRACT
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Facts . The plaintiffs were sugar merchants and hired a ship, the Heron II, to carry sugar to an established sugar market in Basra, Iraq. The ship was delayed, and during that time, the price of sugar fell, and plaintiff made less profit that he would have. He sued the owners of the Heron II. 39 b. REMEDIES FOR BREACH OF CONTRACT
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Held : The defendant knew very well that there was a market for sugar and it was likely that plaintiff wanted to sell the sugar immediately. He therefore bore responsibility for the plaintiff’s loss of profit. 40 b. REMEDIES FOR BREACH OF CONTRACT
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Facts . The plaintiffs wished to expand their business and bought a boiler, which was to be delivered by the defendants on 5 June. In anticipation of the expansion of the facilities, the plaintiffs made contracts to dye fabrics with the Ministry of Supply, which would have earned them exceptionally good profits. The boiler was not delivered until 9 November, so the plaintiffs claimed a) loss of ordinary profits and b) loss of exceptional profits which they could have made with the Ministry of Supply. 41 b. REMEDIES FOR BREACH OF CONTRACT
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Held : The defendants knew that a laundry would suffer loss of ordinary profits caused by their delay i.e. this loss was an inevitable consequence of their breach and therefore they were liable. But they were not liable for the exceptional profits because they knew nothing about the lucrative contracts with the Ministry of Supply nor were such contract within their reasonable contemplation at the time of making the contract (they might have been liable for the loss had the plaintiffs made known to them of the lucrative contracts with the Ministry). 42 b. REMEDIES FOR BREACH OF CONTRACT
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43 MITIGATION The injured party is expected to minimize his loss, Otherwise the damages will be reduced accordingly. He is to take all reasonable steps available. See: Brace v. Calder. The burden is on the defendant to show that the plaintiff failed to mitigate. b.REMEDIES FOR BREACH OF CONTRACT
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Facts . The plaintiff was wrongfully dismissed by the defendant and his partners when the partnership was dissolved.
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