Question
Illustration (i) of s.74 of the Contracts Act 1950 provides as follows: A delivers to B, a carrier, a machine, to be conveyed, without delay,
Illustration (i) of s.74 of the Contracts Act 1950 provides as follows: A delivers to B, a carrier, a machine, to be conveyed, without delay, to A's mill, informing B that his mill is stopped for want of the machine. B unreasonably delays the delivery of the machine, and A, in consequence, loses a profitable contract with the Government. A is entitled to receive from B, by way of compensation, the average amount of profit which would have been made by the working of the mill during the time that delivery of it was delayed, but not the loss sustained through the loss of the Government contract.
Based on Contract LAW in Malaysia, With reference to the provision above, distinguish the application of the first and the second limb of s.74(1) of the Contracts Act 1950. Support your answer with the relevant statutory provisions and decided cases. (14 marks)
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