Alana enters into a contract to purchase a new house that is subject to a 90-day settlement. She pays a deposit and organises her finance. In the meantime, she sells her own house, the proceeds of which will be used to complete the purchase of the new house.

Unfortunately, the sale of Alanas house does not proceed on the due date and Alana has to arrange bridging finance at a much higher rate of interest in order to complete the purchase of the new house.

Alana sues for breach of contract and she seeks an order for damages, including the additional interest charges incurred and the stress she suffered as a result of the delay.

Required

Advise Alana. Review relevant case law on the subject of entitlement to damages as a result of breach of contract.