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Illustrations
(a)A contracts to sell and deliver 50 maunds of saltpetre to B, at a certain price to be paid on delivery. A breaks his promise.
B is entitled to receive from A, by way of compensation, the sum, if any, by which the contract price falls short of the price for
which B might have obtained 50 maunds of saltpetre of like quality at the time when the saltpetre ought to have been delivered.
(b)A hires B’s ship to go to Bombay, and there take on board, on the first of January, a cargo, which A is to provide, and to
bring it to Calcutta, the freight to be paid when earned. B’s ship does not go to Bombay, but A has opportunities of procuring
suitable conveyance for the cargo upon terms as advantageous as those on which he had chartered the ship. A avails himself of
those opportunities, but is put to trouble and expense in doing so. A is entitled to receive compensation from B in respect of such
trouble and expense.
(c)A contracts to buy of B, at a stated price, 50 maunds of rice, no time being fixed for delivery. A afterwards informs B that
he will not accept the rice if tendered to him. B is entitled to receive from A, by way of compensation, the amount, if any, by
which the contract price exceeds that which B can obtain for the rice at the time when A informs B that he will not accept it.
(d) A contracts to buy B’s ship for 60,000 rupees, but breaks his promise. A must pay to B, by way of compensation, the
excess, if any, of the contract price over the price which B can obtain for the ship at the time of the breach of promise.
(e) A, the owner of a boat, contracts with B to take a cargo of jute to Mirzapur, for sale at that place, starting on a specified
day. The boat, owing to some avoidable cause, does not start at the time appointed, whereby the arrival of the cargo at Mirzapur
is delayed beyond the time when it would have arrived if the boat had sailed according to the contract. After that date, and before
the arrival of the cargo, the price of jute falls. The measure of the compensation payable to B by A is the difference between the
price which B could have obtained for the cargo at Mirzapur at the time when it would have arrived if forwarded in due course,
and its market price at the time when it actually arrived.
(f) A contracts to repair B’s house in a certain manner, and receives payment in advance. A repairs the house, but not
according to contract. B is entitled to recover from A the cost of making the repairs conform to the contract.
(g) A contracts to let his ship to B for a year, from the first of January, for a certain price. Freights rise, and, on the first of
January, the hire obtainable for the ship is higher than the contract price. A breaks his promise. He must pay to B, by way of
compensation, a sum equal to the difference between the contract price and the price for which B could hire a similar ship for a
year on and from the first of January.
(h) A contracts to supply B with a certain quantity of iron at a fixed price, being a higher price than that for which A could
procure and deliver the iron. B wrongfully refuses to receive the iron. B must pay to A, by way of compensation, the difference
between the contract price of the iron and the sum for which A could have obtained and delivered it.
(i) A delivers to B, a common carrier, a machine, to be conveyed, without delay, to A’s mill informing B that his mill is
stopped for want of the machine. B unreasonably delays the delivery of the machine, and A, in consequence, loses a profitable
contract with the Government. A is entitled to receive from B, by way of compensation, the average amount of profit which
would have been made by the working of the mill during the time that delivery of it was delayed, but not the loss sustained
through the loss of the Government contract.
(j) A, having contracted with B to supply B with 1,000 tons of iron at 100 rupees a ton, to be delivered at a stated time,
contracts with C for the purchase of 1,000 tons of iron at 80 rupees a ton, telling C that he does so for the purpose of performing
his contract with B. C fails to perform his contract with A, who cannot procure other iron, and B, in consequence, rescinds the
contract. C must pay to A 20,000 rupees, being the profit which A would have made by the performance of his contract with B.
(k) A contracts with B to make and deliver to B, by a fixed day, for a specified price, a certain piece of machinery. A does
not deliver the piece of machinery at the time specified, and in consequence of this, B is obliged to procure another at a higher
price than that which he was to have paid to A, and is prevented from performing a contract which B had made with a third
person at the time of his contract with A (but which had not been then communicated to A), and is compelled to make
compensation for breach of that contract. A must pay to B, by way of compensation, the difference between the contract price of
the piece of machinery and the sum paid by B for another, but not the sum paid by B to the third person by way of compensation.
(l)A, a builder, contracts to erect and finish a house by the first of January, in order that B may give possession of it at that
time to C, to whom B has contracted to let it. A is informed of the contract between B and C. A builds the house so badly that,
before the first of January, it falls down and has to be re-built by B, who, in consequence, loses the rent which he was to have
received from C, and is obliged to make compensation to C for the breach of his contract. A must make compensation to B for
the cost of rebuilding the house, for the rent lost, and for the compensation made to C.
(m)A sells certain merchandise to B, warranting it to be of a particular quality, and B, in reliance upon this warranty, sells it
to C with a similar warranty. The goods prove to be not according to the warranty, and B becomes liable to pay C a sum of
money by way of compensation. B is entitled to be reimbursed this sum by A.