Steel Easy is a company that operates from a large factory that manufactures steel scaling shafts. Buildit is a wholesaler that sells building supplies to construction companies.

Steel Easy supplied Bulidit with six months'worth of stock of steel scaling shafts that were defective. Buildit resold the shafts to its regular customers over the six month period. Once the various customers (construction companies) realised that the shafts were defective, Buildit's business reputation suffered severely and many of these customers stopped trading with Buildit as a result.

Buildit (the Plaintiff) institutes action for breach of contract, claiming damages for loss of trade and injury to business reputation.

Steel Easy (the defendant) seeks advice.

1. Consider the legal requirements for a damages claim. Pay particular attention to the requirements in light of the difference between general and special damages.

With reference to case law, advise your client on why the Plaintiff is not likely to succeed in this damages claim against it.