Mo is opening a new Italian restaurant. He contracts with Bruno to deliver a pizza oven. He tells Bruno he must have it by 20 July because he is opening the restaurant on that day. Bruno runs into some problems and doesn't deliver the oven until 27 July. The oven works perfectly and is exactly as described by Bruno.

After he met with Bruno, Mo spent $1000 to advertise the grand opening of the restaurant on 20 July. He also got a booking for 50 people for a private birthday function on 24 July.

Mo estimates that he lost $5000 profit because of the delay in opening the restaurant, as well as wasting the money he spent on the advertising. Mo thinks that the private function would have also made him another $2000 profit.

Advise Mo:

a) Could he have cancelled the contract because of the delayed delivery of the oven? (6 marks), and

b) What damages would he be entitled to? (6 marks)

Cite relevant case law in your answer.