Hi Tutor,

I need your help on contract law, regarding damages and claims:

Johan is an artisanal carpet maker who makes carpets using traditional methods. He obtains fabric, which he uses to make his carpets, from a supplier called "Clothier".

On the first day of October last year, Johan entered into a contract with Clothier to purchase 50 metres (length-wise, and at a width of 1 metre) of a fabric called "Naturallay". This fabric is special due to its unique properties, and to Johan's knowledge, Clothier is the only supplier of this fabric in the market. Under this contract, Johan will pay Clothier $10,000 in total. As it was a large order, Clothier will only deliver the fabric to Johan 10 days later, i.e. on 11th October.

At the time of contract, Johan had mentioned to Clothier that he needed the fabric to be delivered strictly by 11th October, because he will use it to fulfil various carpet orders from his customers. In particular, Johan boasted to Clothier that he had a special carpet order from a wealthy customer called Rebecca that will allow him to make a generous profit of $5,000.

However, on 11th October, Clothier failed to deliver the fabric to Johan. When Johan called Clothier to ask about it, Clothier admitted that this was due to its fault.

Question 1:

Examine and discuss the four (4) aspects of damages which Johan should consider if he wishes to claim against Clothier for (i) the loss of profits from Rebecca's special carpet order, and (ii) the loss of profits from his other customers' carpet orders, due to Clothier's failure to deliver the fabric. To conclude with your view on whether Johan is likely to succeed in his claim.

Question 2:

Kindly state in-text citations or references related to the above case study.

Thank you.