Jerry agrees to service Z Ltd's oven for 1,000. Jerry knows that Z Ltd need the oven to operate their bakery. Z Ltd tell Jerry that the service must be finished on time because otherwise Z Ltd will be in breach of a very profitable contract to do bakery for Y Ltd. Jerry performs the service so badly that Z Ltd's oven cannot work at all. Jerry cannot fix the problem. Z Ltd hunt around for someone else to fix the oven. The only person they can find is Tom, who fixes the oven one week after Jerry should have fixed it. As Z Ltd could not do the bakery for Y Ltd they are themselves in breach of contract and will have to pay Y Ltd 2,000 damages.

Z Ltd wants your advice on whether they can recover any money from Jerry.