A contract document had the following clauses on award of damages:
Damages
1. If the seller does not deliver the goods (medical supplies) on schedule, the buyer can hire goods of the same description till the goods are delivered. The seller will meet the hire charges.
2. If the buyer terminates the contract for breach of any term by the seller, the buyer may buy goods of the same description from another source. The seller will pay for the price in excess of the contract amount.
3. If the seller does not deliver the goods on schedule, the buyer can hire goods of the same description. If the goods remain undelivered, the buyer can terminate the contract. The seller will be liable for the hire charges till the termination of the contract under 1 and excess of price for purchase under 2.
4. In addition to the above, the seller will pay 0.5% of the contract value for every week of delay in delivery subject to a maximum of 10% of the total contract price.
Limitation of Liability
Neither party shall be liable to the other party for any indirect and consequential damages, loss of profits or loss of production.
The contract between buyer and seller was for medical supplies such as MRI Scan machine, X-ray machine and incinerator. The medical supplies sold by the seller were defective. Because of using defective medical supplies, the buyer’s Lab got damaged badly and as a result the buyer suffered a large financial loss in rebuilding the Lab. Parties are in dispute on the quantum of damage.

Question

A contract document had the following clauses on award of damages: 
 Damages 
 1. If the seller does not deliver the goods (medical supplies) on schedule, the buyer can hire goods of the same description till the goods are delivered. The seller will meet the hire charges. 
 2. If the buyer terminates the contract for breach of any term by the seller, the buyer may buy goods of the same description from another source. The seller will pay for the price in excess of the contract amount. 
 3. If the seller does not deliver the goods on schedule, the buyer can hire goods of the same description. If the goods remain undelivered, the buyer can terminate the contract. The seller will be liable for the hire charges till the termination of the contract under 1 and excess of price for purchase under 2. 
 4. In addition to the above, the seller will pay 0.5% of the contract value for every week of delay in delivery subject to a maximum of 10% of the total contract price. 
 Limitation of Liability  
 Neither party shall be liable to the other party for any indirect and consequential damages, loss of profits or loss of production. 
 The contract between buyer and seller was for medical supplies such as MRI Scan machine, X-ray machine and incinerator. The medical supplies sold by the seller were defective. Because of using defective medical supplies, the buyer’s Lab got damaged badly and as a result the buyer suffered a large financial loss in rebuilding the Lab. Parties are in dispute on the quantum of damage.

Accepted Answer

Seller in this case will not be responsible to pay the financial loss suffered by the buyer for the reconstructing the Lab. This is the principle and the clauses convey

Answer

Buyer will have full remedy under the terms of contract to seek damages from the seller for the defective product sold and also rebuilding the Lab. This is conceived under the terms of contract.

Answer

Buyer will have full remedy under the terms of contract to seek damages from the seller for the defective product sold and also rebuilding the Lab. Irrespective of contract terms, this is conceived under the common law.

Answer

Buyer suffered a lot. As a fair process, seller will have to pay the financial loss suffered by the buyer for the rebuilding the Lab and some extra money for the mental agony. This is the principle and the clauses convey.

Crowdly

A contract document had the following clauses on award of damages: Damages...

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