1. B Ltd agreed to build a warehouse for S. Ltd for 400,000 dollars. Under the terms of the contract, the work was to be completed by 31 January. The contract included a term to the effect that, in the event of failure to complete in accordance with the contract, B Ltd would compensate S Ltd at the rate of 1000 dollars for every day for the first two weeks after 31 January, and thereafter at the rate of 1000 for every subsequent day of delay. The building was completed four weeks late and S Ltd claims the following amount of damages:

14 X 1000=14,000

14 X 5000=70,000

Total = 84,000

Advise B Ltd of its liability.

2. T Ltd contracted with H Ltd to transport a consignment of video recorders from London to Newcastle: "to reach the destination on the day of departure from London". Nothing was paid about the ultimate purpose in sending the video recorders to Newcastle, but T Ltd knew that H Ltd ran a hire business. The video recorders were not delivered until four days leaving London. As a result of the delay, H Ltd lost the profits on the hire of the machines for the four-day period.

Advise H Ltd about a possible claim for damages for loss of income.