Question 1:
Wholesome Foods Ltd decided to build an extension to its Newtown bakery to cope with increased demand for its wholemeal bread. The contract is awarded to Bettabuilders Co Ltd, which agrees to complete the work by 1 May. On the strength of the planned increased capacity at the bakery, Wholesome Foods Ltd concludes an extremely profitable contract with the Newtown Council to supply all the bread to local schools from 4 May. Owing to extreme bad weather in February and March, Bettabuilders Co Ltd completes the extension 10 weeks late. Wholesome Foods Ltd estimates its losses as:
- K1,000,000 a week for the profits it would have made on the expected general increase in bread sales:
- K4,000,000 a week for the profits it would have made on the schools contract.
Required
a. What damages will Wholesome Foods Ltd recover?
b. How would your answer differ if Bettabuilders Co Ltd had agreed to pay K50,000 for every week of delay in completing the extension?
Question 2:
Kevin is the owner of a small firm based in Blantyre, which specialises in office removals. He operates with two vans and three employees. He contracts to remove two partners in a firm of accountants, who are moving from their main office in Hull to establish a branch office in Lilongwe. To minimise the disruption to office routine, the move is to take place on a Sunday. What is the legal position in the following situations?
a. The main route to Lilongwe has a bridge which is closed because of high winds (the only alternative route is a much longer and more expensive journey).
b. As a conservation measure, the government imposes regulations banning business traffic from the roads on Sundays.
c. Kevin takes on a house removal for the same day. One of the vans fails its MOT on the Friday and Kevin decides to use the only one available for the house removal.
d. Kevin and his three employees are taken ill with influenza and are not well enough to carry out the move.
e. Kevin completes the removal except for one filing cabinet which he did not have room for. He refuses to make a special journey for it because 'it would cost too much in petrol'.