What damages for breach of contract


Assignment task:

Arthur took his car to be repaired at Miller's Garage Ltd ('MGL') on 1 February 2022. It was agreed that the repairs would be completed in time for Arthur to collect the car the next day at 9:00am. Arthur told MGL that the car had to be ready by that time as he needed it to drive to a town about 80 kilometres away to exchange contracts for the purchase of a block of land from Vicky, who was prepared to sell it to him for a price that was $20,000 below market value. Arthur also told MGL that Vicky insisted that she would only sell the land to Arthur if Arthur exchanged the contract for sale by 10:00am on 2 February 2022. When Arthur called in on 2 February 2022 to collect his car from MGL, he discovered that the repairs had not been completed on time. In fact, the repairs were only completed at midday that day. As a result of not having his car, Arthur was unable to exchange contracts with Vicky because there was no other way to get to Vicky's place except by private transport. Answer both questions below in relation to the above facts.

Your answer to Part (a) must be in the IRAC format, however IRAC is not required for your answer to Part (b).

Answers to both Parts must be fully supported with statute or case law authority.

(a) What damages for breach of contract, if any, can Arthur recover from MGL in relation to the fact that he was unable to exchange contracts with Vicky?

(b) Would your advice in (a) be any different if there was a large sign at the entrance to MGL's premises which stated that: MGL excludes all liability for any losses suffered by its customers in the event of any breach of a contract between MGL and any of its customers for repair of vehicles owned by such customers.

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Business Law and Ethics: What damages for breach of contract
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