Select a Cake is a business which bakes and sells cakes. Select a Cake is expanding its product range to include catering for special events such as weddings and birthday parties. It orders an industrial fridge from Cool Ltd but delivery of the fridge is 6 months later than expected. During the 6 months, Select a Cake has tried to buy fridges from other suppliers without success. Select a Cake is claiming it has lost profits and is taking an action against Cool Ltd for:

1. 1)Profits which would have been made from the expected increase in business following expansion and
2. 2)Profits which they would have made from a lucrative contract for the supply of buffet platters for a large party supplier which they would have had to make a bid for
3. Is Select a Cake's claim for lost profits likely to succeed?
4. a)Yes but only in respect of the lost profits form the expected increase in business. Not the profits from the lost contract with the party supplier
5. b)No, as all the losses are too remote
6. c)Yes,thelostprofitsfromboththeexpectedincreaseinbusinessandthe
7. lost contract with the party supplier will be recoverable
8. d)No as Select a Cake has failed to mitigate their losses