Roger placed an order for a shipment of “Kopi Kuching” brand of high grade coffee with Best Indonesian Coffee Pte Ltd. (“BIC”). BIC represents a large coffee exporter based in Indonesia which carries the “Kopi Kuching” brand.
Roger also entered into a contract with a renovation contractor, Harry, to renovate his kitchen and construct a special storage room in his flat to keep his stock of high grade coffee. The kitchen was renovated. However, Harry incurred extra costs of $2,000.00 during the initial stage of construction and claimed that the extra costs were necessary to ensure that the special storage room conformed to the specifications laid down by the building authorities.
Roger refused to pay the extra $2,000 and wanted Harry to continue constructing the special storage room. On the basis of Roger’s refusal to pay the extra costs, Harry told Roger that he does not intend to continue with the construction of the special storage room.
Due to miscommunication between BIC and the exporter in Indonesia, BIC was late in shipping the coffee to Singapore.
During the delay, there was a sudden surplus of high grade coffee in the Singapore market. Another brand of high grade coffee, “Civet Cat Coffee”, from Malaysia was available to retailers in Singapore. The price of high grade coffee in Singapore fell.
By the time the shipment of “Kopi Kuching” coffee reached Singapore, Roger made $15,000.00 less profit than he would have made if the coffee had been delivered on time.
A) Advise whether Harry is entitled to claim payment from Roger.
B) Advise whether Roger can succeed in claiming damages for the $15,000.00 loss of profit.
Last Updated on February 11, 2019 by Essay Pro