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X contracts to sell and deliver 500 bales of cotton to Y on a fixed day. X knows nothing of Y’s mode of…

Y can recover the difference between the market and contract prices at the due delivery date. Section 73 excludes the additional mill-closure losses because X lacked…

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X contracts to sell and deliver 500 bales of cotton to Y on a fixed day. X knows nothing of Y’s mode of conducting his business. X breaks his promise, and Y, having no cotton, is obliged to close his mill.
Choose the legal remedy(ies) available to Y for breach of contract made by X :

Select one answer
Answer and explanation

Correct answer A

Y can recover the difference between the market and contract prices at the due delivery date. Section 73 excludes the additional mill-closure losses because X lacked knowledge of Y's special business circumstances.

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