Give a read to the chapter on damages in the textbook. Several of the doubts should clear with this. I am systematically structuring answer to some of the questions which have come up in relation to application of principles of award of damages. This will help put it in a perspective.Breach by buyer- goods1.seller has to fabricate a machine and sell it to a buyer. The buyer breached. The buyer will pay loss of profit to the seller. !ow about this that the seller sells the machine to another buyer and there is no loss to him. The argument misses the point that the second customer is not a substitutecustomer. !e is yet another customer. "y the breach of the first customer# in absolute terms# the seller has lost a customer.$. This is a repeat of the previous one.retailer enters in a contract to sell a T% to a buyer. The buyer breaches and the retailer sells the T% to anotherbuyer. The second buyer was yet another buyer. "y the breach# the retailer has sold one less T%. Thus# for every breach by a buyer# the seller will get loss of profit.&.seller is to fabricate a machine and sell to the buyer. 'hen the machine is ready to be delivered# the buyer refuses to take delivery of the machine. The machine is so specific and peculiar that there is no market for it and the seller will not be able to sell. (ases like this are rare where there is no market or money equivalent cannot be worked out. In such cases# court will award specific performance of contract. The buyer will have to take the machine and pay the price. Thus# it will be either 1 or &. If it is one# it will be taken that the part fabricated machine will be completed and sold to a buyer.)See page 1*+,1*$-.Breach by customer- services.. 'hile the above question has been answered for sale of goods# how would it apply to provision of services/ There is a taxi service with a fleet ofseveral taxis.customer backs out. This is a loss of a customer. The customer should pay loss of profit.0. There is a taxi on the road.customer hails it and agrees to go to a destination and then backs out. There is a breach. !owever# right behind him is a person waiting for a taxi. !e contracts to go to the same destination. The breach is not a loss of a customer as there is only one taxi and the contract was for the particular taxi. The supply is necessarily limited to one taxi. There is no loss to the taxi person. 1o damages should be awarded.*.flight of an airlines is heavily wait listed.passenger with a confirmed ticket cancels his ticket. There is no loss to the airlines. 2'e cannot say thatit is an absolute loss of one customer# unlike the case of goods# as in $.passenger may or may not be interested in taking another flight on another day.3 The flight is a specific one with a limited capacity.4.flight is only 4+5 full and a passenger cancels the flight. 'hat is the loss to the airlines/)The principle will get applied in each case with its context-Breach by seller6. In a sale contract# the seller breach. The buyer get the 2market price on the day of the breach minus the contract price3. The buyer does not have tobuy it. 2See page 1*$,1*& in the textbook3. There is absolutely no requirement on the buyer. 7nce the breach happens# he is entitled to the damages.8. In a sale contract# the seller breach. There is absolutely no market for the goods. This is an exceptional situation. The court will award specific performance.Misc Themes11.company enters in a contract to hire out a taxi for six months.week later# the hirer breaches. The taxi company will get the market hire rate on the day of the breach minus the contract hire rate. The company is not required to hire out. It gets entitled to the damages once the breach happens. The rate has gone up and there are no losses. The company getsnothing as it has no loss. The company is simply not able to hire out the taxi. This is the company9s problem. :aw assumes there is a market and the parties are able to transact.1+.bank wrongly dishonours a cheque of an account holder leading to a loss of reputation. The loss of reputation is a consequential loss and would not be awarded.Thus# in each case# we first need to delineate the facts and identify the principle to be applied. ;ollowing this# the principle is to be applied. This then becomes the award of damages.