Design Ltd run an architecture business and purchased an eighteenth-century

property to be used as its new business premises from 19th April. The property

needed to be completely repainted and as such could not be used for ordinary

business until the work was completed.

Design Ltd hired James for the sum of 1,000 to do the painting, all work to be

completed by 18th April otherwise James will be liable to pay 1,000 for each day

that the work was not completed.

Design Ltd also entered into a separate, and very profitable contract, with Events

Ltd. The contract price is 2,500 and under the contract, Design Ltd are to hire

their entire property to Events Ltd who are using the building to host a wedding

reception on 20th April. This is the first time that property has been hired out in

this way, as the property was only originally purchased to be used as an office as

part of Design Ltd's architecture business.

James did not complete the work until 28th April (ten days late). This meant that

Design Ltd was unable to operate its architecture business from the premises

until 29th April, causing a loss of profits in the region of 250 per day during the

ten day delay period.

Design Ltd have also lost the contract with Events Ltd due to the paining not

being completed on time.

Design Ltd is now claiming damages of 10,000 from James.

Advise James as to his liability to pay damages to Design Ltd for breach

of contract.