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First Principles of Business Law |
| Remedies for breach of contract |
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3. An award of damages |
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3.7. Types of loss: consequential (or indirect) losses |
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Read the facts and the question and then choose the best answer. A, a tour operator, operates a tourist bus from Melbourne to Alice Springs. The driveshaft of her bus breaks and A telephones B, the owner of a workshop, to ask if he can weld the shaft. A stresses the job is urgent: she has a trip scheduled for the next day. B promises to do the job that same day. But he fails to tell his workshop supervisor that the job is urgent and, because of this, the repair is not begun until the next day. Because the bus is not available, A has to cancel the tour. As a result she loses the $5,000 profit she makes on such tours. Can A claim the profits she would have made from her scheduled trip from B as damages for breach of contract? |
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