1. Ahmad wants to travel to Sydney to make a business deal worth Rm 100,000 . A ship company contracts with Ahmad to convey him from Port Klang to Sydney . The ship company promises to sail on 29th June , and Ahmad pays him Rm1000 being the deposit which is one-half of his passage money . Unfortunately , the ship does not sail on 29th June . As a result , Ahmad is detained at Port Klang for two nights , and he has to spend Rm200 per night on accommodation expenses during the two nights so that he can proceed to Sydney in the next available ship owned by another company . The second ship company charges him higher passage money , which is Rm 2500 . When Ahmad arrives in Sydney , he has missed the business deal . Now Ahmad wants to sue the first ship company for all his losses . What is Ahmad's legal position ?
ANswer:
The first ship company is liable to compensate Ahmad for the following damage
(i) His deposit Rm 1000 , with interest
(ii) The accommodation expenses , Rm200 x 2 =Rm 400
(iii) The excess of passage money paid for the second ship over the first , RM2500- Rm 2000 =Rm 500
Under section 74 (2) of the Contract Act 1950 , compensation is not to be given for any remote and indirect loss or damage sustained as a result of the breach . THerefore Ahmad will not be able to claim the Rm100,000 as loss of profit .
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