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Please help me with this question. (Discharge by Damage) Contract Law 1.Salima, a seamstress, decided to expand her business after many years operating on a

Please help me with this question. (Discharge by Damage) Contract Law

1.Salima, a seamstress, decided to expand her business after many years operating on a small scale from home. She contracts with Mamat, a contractor, in January to convert her garage into a workshop to place her three newly employed assistants, Muna, Luna and Tina and four new sewing machines which she had ordered earlier. The cost of the building conversion is RM10,000 and the work is to be completed by 28 February so that her business may commence on 1 March as planned.

However, sometime in early February, Mamat started to face problems with material and labour resulting in the delay of the renovation works until 1 June. As a result of the delay, Salima could not proceed with her normal monthly work in the months of April and May as she had already given up her old machines in view of getting the new ones on 1 March. Salima also had to pay RM100 per month to the machines' supplier for the cost of storing the new machines. In addition, she also had to give up two lucrative contracts worth RM6,000 each offered by Joy Kindergarten and Clara Dancing School to sew uniforms and special outfits for their coming concerts. Muna, Luna and Tina are also demanding that Salima pays them for their loss of income as they had left their previous jobs to work with Salima on 1 March.

All these turn of events had not only caused Salima mental distress and anguish but also caused her husband, Salleh, to suffer from cluster headache and consequently had to be hospitalized.

(i)Discuss the rights and liabilities of the relevant parties and the applicable remedies

(ii) If the contract provided that in the event of any breach, Mamat would pay Salima RM200,000, how would you advise Mamat?

(iii) If Salima could have rented another place to place the machines and workers, but refuses to do so, how will you advise Mamat?

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