5. Facts: The plaintiff, a management consultancy firm, made an urgent contract with a computer repairs company, Paxes Pty Ltd to repair the plaintiff's mainframe computer. Since the plaintiff firm could not operate without the mainframe the firm ensured that time was of the essence in the contract - stating that Paxes must complete the repairs within 3 working days. Due to illness of certain key staff members Paxes has not made the deadline. The plaintiff stands to lose $4,000 per day each day the mainframe is down, and a lucrative government tender if it is not up by the end of the week.

Required: Advise the plaintiff firm.

Questions to Consider:

Has there been a breach?

Has loss or injury occurred as a result of the loss?

Is the loss or injury too remote? How does the rule in Hadley v Baxendale operate?

Have both limbs been satisfied here? Should the firm mitigate?