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Don runs a small cate that makes serves a range of specialised coffees. During a busy period, Dan's coffee machine down and he is unable
Don runs a small cate that makes serves a range of specialised coffees. During a busy period, Dan's coffee machine down and he is unable to sell
coffee as he does not have a replacement coffee machine as his machine is very expensive and makes coffee in a unique manner. The coffee
machine broke down because a component has malfunctioned and needs to be replaced by the manufacturer of the machine. Dan calls Tommy, a
courier, to collect the broken component and deliver it to the manufacturer. When Tommy collects the component, he told Dan that the
component will be delivered to the manufacturer later that day. Dan stresses the importance of a quick delivery as the cafe will be closed until the
new component is delivered to the cafe. But Tommy forgets to deliver the component that day and does not do so for five days. Consequently,
Dan's business doses for seven days, resulting in significant financial losses and the cancellation of a $3,000 party for a coffee club that was
scheduled to be held at the cafe during the unforeseen closure. Refer to relevant common law rules and cases and complete the following tasks.
1. Advise Dan whether he can claim damages from Fong.
2. Describe to commercial reasons why the calculation of damages is important for a business person to understand.
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