First Principles of Business Law

Quiz: Remedies for breach of contract

Question 17

 

 

 

X, the owner of a dry-cleaning business, tells B that he needs to upgrade his cleaning equipment because C has offered to buy his business if an end-of-month review is positive.  X orders a new dry-cleaning machine from B, who undertakes to deliver and install it.  When installed the machine functions badly and it takes B an extra six working days to find and fix the faults.  During this time X's normal business operations are disrupted, causing many customer complaints.  When C reviews X's business and discovers these problems, he decides not to proceed with the purchase of X's business.  X sues B for breach of contract (a breach which B admits), claiming damages to compensate for the lost profit he would have made if C had bought the business.  On which of the following cases could X could rely to assert that damages are not an adequate remedy for breach of contract in these circumstances?

(a)  Cehave NV v Bremer Handelsgesellschaft mbH 1976 QB 44

(b)  Dougan  v Ley & another (1946) 71 CLR 142

(c)   Koufos v C Czarnikow Ltd [1969] 1 AC 350 (HL)

(d)  Steele v Tardiani (1946) 72 CLR 386

(e) JC Williamson Ltd v Lukey & another (1931) 45 CLR 282

 

 

 

 

 

 

 

 

 
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