Alice Ltd operates a factory which manufactures fabric for export purposes.

The two dyeing machines at the factory cease to function and production stops. The manager of Alice Ltd contacts XY Repairers to fix the machines.

XY Repairers agrees to complete the repairs within two weeks at the cost of $20,000. 29

The engineers of XY Repairers have made a mistake in the course of repairing the machines, which ruins the engine of the machines.

XY Repairers has to import two new engines from Japan to replace the damaged ones.

It takes another four weeks to fix the machines.

Because of the delay, it has to cancel a lucrative contract with a US company. It now claims the following from XY Repairers:

(1) HK$500,000 for profit ordinarily made by Alice Ltd in four weeks.

(2) HK$3 million for losing its contract with the US company.

Advise the chance of success of the claims by Alice Ltd.