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A, the owner of a boat, contracts with B to take a cargo of jute to Mirzapur, for sale there, starting…

Illustration (e) to section 73: the measure is "the difference between the price which B could have obtained for the cargo at Mirzapur" when it would have arrived if…

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A, the owner of a boat, contracts with B to take a cargo of jute to Mirzapur, for sale there, starting on a specified day. Owing to an avoidable cause, the boat starts late and the cargo reaches Mirzapur later than it would otherwise have done. Meanwhile the price of jute falls. How is B's compensation measured?

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Correct answer D

Illustration (e) to section 73: the measure is "the difference between the price which B could have obtained for the cargo at Mirzapur" when it would have arrived if forwarded in due course, and its market price when it actually arrived. That fall in price is the loss arising naturally from the delay. Prices at the starting point, or B's own cost, do not measure the loss caused by late arrival.

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