However the losses are not too remote if they are a ordinary losses which arise

However the losses are not too remote if they are a

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are too remote are not recoverable. However, the losses are not too remote if they are: (a) ordinary losses which arise naturally in the usual cause of things; or (b) Extra-ordinary losses which arise within the reasonable contemplation of the parties at the time they entered into the contract. (In reality, the contracts have recitals “agreed as follow” to try to explain as much as of the details in the contract to cover some ‘expected situations’ , so it is easier to prove that the parties have the mutual knowledges what might happens) In this case, the court held that the loss of profits did not fall under the 1st limb because normally mills would have a spare shaft. Since the D did not know that the Pl had no spare shaft, the loss of profits did not fall under the 2nd limb as well. Hence, the loss of profits was not recoverable as they were too remote since they could not satisfy both limbs. In Victoria Laundry (Windsor) Ltd v Newman Industries Ltd [1949] , the defendant delayed transporting the boilers for repair. The plaintiffs sued for ordinary loss of profits and also extra- ordinary loss of profit due to a lucrative government contract. The court held that the plaintiffs could claim the ordinary loss of profits under the 1st limb because it was not too remote as it arose in the natural course of events. However, the plaintiff could not the extra-ordinary loss of profits under the 2nd limb as the defendants did not know of the lucrative government contract at the time of the contract. The court also explained the test in Hadley v Baxendxale [1854]: (a) the plaintiff can always recover foreseeable losses or damages (nett profit) which arises naturally. (b) What is reasonable foreseeable depends on the knowledge the parties had, especially the defendant; (c) With regards to 2nd limb, the knowledge is natural or imputed knowledge. In Malaysia, s.74(1) CA 1950 provides for the test of remoteness of damages which is nearly similar to the test in Hadley v Baxendxale [1854] . In Tech Kee Keong v Tambun Mining Co Ltd (FC) [1968] , the FC held that the s.74 is actually a statutory statement of the rule in Hadley v Baxendxale [1854] meaning that they the test in Hadley v Baxendxale [1854] is applicable in Malaysia. ( Since when you argue in court it is better for youth quote Malaysia precedent cases, as per Tech’s ruling, English cases can also be argued in your arguments. ) In Bee Chuan Rubber Factory Sdn Bhd v Loo Sam Moi (FC) [1968] , the appellant agreed to sell land to the respondent who wanted to build a house. The appellant did not transfer the land on time and the respondent sued for breach of contract. One of the losses claimed was the rent incurred. The
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FC held that this loss could be recovered as it was not too remote under the 1st limb as it arose in the natural course of events. In Tham Cheow Toh v Associated Metal Smelters Ltd (FC) [1972] , the plaintiff brought a furnace from the defendants who guaranteed that it could withstand a certain temperature. The furnace could not withstand the temperature. The Pl sued for loss of profits. The FC held that the
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