CL510 Assignment 2. Semester 2 May 2010 Student name: Victoria Lenchik Student ID: 700160 Question A 1) When there is a breach of contract the breaching party is liable for the damages. “The buyer’s rights include the right to reject the goods in some circumstances, the right to recover the price if already paid for total failure of consideration, damages for breach of warranty, damages for non-delivery, and an action to recover the goods and obtain consequential damages. (Understanding Commercial Law Edition 6 Summary page 403(24). The laundry recovered loss of profit because they didn’t receive the boiler on time which is obviously led to the loss of some profit for them. 2) The court awarded the plaintiff damages for loss of profit due to the late delivery. The defendant didn’t know about the special government contact, so that’s why the plaintiff did not receive it. Question B ) Section 30 states that it is the buyer’s duty to accept the goods. If he or she failed to do so, he or she can be sued for damages for non-acceptance. The buyer has the right to examine the goods, if he or she has not previously had the chance to do so the opportunity to do so must be given on request” example Finch Motors v Quin ( no 2) 1980. Source: Understanding Commercial Law Edition six page 390 – 391. The damages Huia Kiwifruit ltd would likely face are “ estimated loss directly and naturally resulting in the ordinary course of events, from the buyers breach of contract” Huia Kiwifruit ltd has to sell the goods elsewhere and if there is any loss made on the resale that will be what is claimed by way of damages and if there is an available market for the goods , the damages will be the difference between the contract price and the market price at the time when the goods ought to have been accepted.
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