DAMAGES

Speed Co manufactures precision components for the engines installed in racing cars Fast Co which operat racing team, has asked Speed Co to supply one of its regularly a specification The part was duly manufactured and suppled ydered components to a much higher

Unfortunately, the new component was not as required and Fast Co found that is enges we flinge Th resulted in additional costs of $100,000 as well as lost revenues of $500,000 from withings ca competition Speed Co has admitted that the technical production problems and not be ed or not

Rush Co, which runs a rally team, was concerned when it learnt about the problems expened by Fat CX had placed a similar order for the higher specification components with Speed Co. The components been delivered to Rush Co

– Task 1

Which TWO of the following damages could Fast Co claim?

1.Fast Co’s losses of $500,000

2.Unlimited costs of purchasing components from alternative supples

3.Fast Co’s costs of $100 000

4.Fast Co’s costs of examining incoming goods intially received from Speed Co
3&4 bcz he cannot claim unlimited amt nor the loss of revenues bcz of fast co