(b) That's wrong. It is clearly established in Australian law that damages can be claimed for reasonable expenses incurred in expectation of proper performance of the defaulting party's contractual obligations. After all, it is clear that in the present case, all the money spent by A was only spent because A expected B to deliver merchantable goods. Since the machines failed to work, all the expenditure is wasted. Clearly that is a loss that results from the breach of contract, and A is entitled to be compensated to the extent that the costs would not have been wasted had the contract been properly performed by B.