Please answer part b.

Question 15 BigDrinks Ltd (BD) bottles mineral water. Business is good and with an increased demand for bottled water it wants to expand its factory. In April 2019, it signed a contract with a builder, Favela Construction Ltd (FC), to build an extension to the bottling factory. Under the contract, the construction must be completed no later than 1" August 2019. The following questions share the above facts only; otherwise, each question has different and independent facts. During the negotiations, BD told FC that timely completion of the construction was vital for them because their largest customer had put in a huge order which had to be fulfilled by the start of the Rugby World Cup in September 2019 and they could only do it in the new building with new plant and equipment FC completed the contract at the end of September 2019, which was a breach of the contract. The expected profit from a loss of normal production caused by a two month delay is only $100,000. But as a result of the delay, the order was cancelled and BD lost a profit of $200,000 that could have been made from the order. (b) Clause 7 of the contract states: "FC Ltd must pay BD Ltd $1,000 per day for any day or days of unreasonable delay" ("unreasonable delay" is defined in the contract). The figure is roughly BD's average daily profit in the year up to April 2019. FC was guilty of 20 days of unreasonable delay and construction was delayed for 20 days into August 2019. However, had the construction been finished on time, BD would not have operated and made a profit in August anyway, because its old plant and equipment was destroyed by fire in May and new plant and equipment would only arrive in September. Is FC liable to pay $1,000 per day for the 20 days of unreasonable delay? 5 marks Question 15 BigDrinks Ltd (BD) bottles mineral water. Business is good and with an increased demand for bottled water it wants to expand its factory. In April 2019, it signed a contract with a builder, Favela Construction Ltd (FC), to build an extension to the bottling factory. Under the contract, the construction must be completed no later than 1" August 2019. The following questions share the above facts only; otherwise, each question has different and independent facts. During the negotiations, BD told FC that timely completion of the construction was vital for them because their largest customer had put in a huge order which had to be fulfilled by the start of the Rugby World Cup in September 2019 and they could only do it in the new building with new plant and equipment FC completed the contract at the end of September 2019, which was a breach of the contract. The expected profit from a loss of normal production caused by a two month delay is only $100,000. But as a result of the delay, the order was cancelled and BD lost a profit of $200,000 that could have been made from the order. (b) Clause 7 of the contract states: "FC Ltd must pay BD Ltd $1,000 per day for any day or days of unreasonable delay" ("unreasonable delay" is defined in the contract). The figure is roughly BD's average daily profit in the year up to April 2019. FC was guilty of 20 days of unreasonable delay and construction was delayed for 20 days into August 2019. However, had the construction been finished on time, BD would not have operated and made a profit in August anyway, because its old plant and equipment was destroyed by fire in May and new plant and equipment would only arrive in September. Is FC liable to pay $1,000 per day for the 20 days of unreasonable delay? 5 marks