Illustration (h)
A contracts to supply B iron at a price higher than that for which A could procure and deliver the iron. B wrongfully refuses to receive the iron.
B must pay to A, by way of compensation difference between contract price of iron and the sum for which A could have obtained and delivered it.

(i)
A delivers to B, a common carrier, a machine, to be conveyed, without delay, to A’s mill, informing B that his mill is stopped for want of machine B unreasonably delays delivery of machine, and A, in consequence, loses a profitable contract with Govt.
A is entitled to receive, by way of compensation average profit which would have been made by working the mill during the time that delivery was delayed, but not the loss sustained through loss of Govt contract.

(j)
A, having contracted to supply B 1,000 tons of iron at 100 rupees a ton contracts with C for purchase of 1,000 tons of iron at 80 rupees a ton telling C that he does so for performing his contract with B. C fails to perform his contract with A who cannot procure other iron, and B, in consequence, rescinds the contract.
C must pay A 20,000 rupees being profit which A would have made by performing his contract with B.

(k)
A contracts with B to make and deliver to B machinery. A fails to deliver it, and B is obliged to procure another at a higher price than what was to be paid to A. B is prevented from performing a contract he had made with C at the time of his contract with A (but which had not been communicated to A).
B is compelled to compensate for breach of that contract. A must pay to B difference between contract price of machinery and sum paid by B for another but not the sum paid by B to C as compensation.

(l)
A, a builder, contracts to erect a house by first January, so that B may give possession of it to C, to whom B has contracted to let it. A is informed of the contract between B and C. A builds the house so badly that, before first January, it falls down and has to be re-built by B. B, thus, loses the rent which he was to receive from C.
B has to compensate C for breach of his contract. A must make compensation to B for cost of rebuilding of house, for rent lost, and for compensation made to C.

(m)
A sells certain merchandise to B, warranting it to be of a particular quality. B, in reliance upon this warranty, sells it to C with a similar warranty Goods prove to be not according to warranty, and B becomes liable to pay C a sum of money by way of compensation. B is entitled to be reimbursed this sum by A.

(n)
A contracts to pay a sum of money to B on a day specified A does not pay the money on that day. B, in consequence, is unable to pay his debts, and is totally ruined A is not liable to make good to B anything except the sum he had contracted to pay, together with interest upto the day of payment.

(o)
A contracts to deliver 50 maunds of saltpetre to B on the first of January, at a certain price, B, afterwards, before the first of January, contracts to sell the saltpetre to C at a price higher than the market price of the first of January. A breaks his promise.
In estimating the compensation payable by A to B, the market price of the first of January, and not the profit which would have arisen to B from the sale to C, is to be taken into account.

(p)
A contracts to sell and deliver 500 bales of cotton to B on a fixed day. A knows nothing of B’s mode of conducting his business. A breaks his promise, and B, having no cotton, is obliged to close his mill. A is not responsible to B for the loss caused to B by closing of the mill.

(q)
A contracts to sell and deliver to B, on the first of January, certain cloth which B intends to manufacture into caps of a particular kind, for which there is no demand, except at that season. The cloth is not delivered till after the appointed time, and too late to be used that year in making caps.
B is entitled to receive from A, by way of compensation, the difference between the contract price of the cloth and its market price at the time of delivery, but not the profits which he expected to obtain by making caps, nor the expenses which he has been put to in making preparation for the manufacture.

(r)
A, a ship owner, contracts with B to convey him from Calcutta to Sydney in A’s ship, sailing on the first of January, and B pays to A, by way of deposit, one-half of his passage-money. The ship does not sail on the first of January, and B, after being, in consequence, detained in Calcutta for some time, and thereby put to some expense, proceeds to Sydney in another vessel, and, in consequence, arriving too late in Sydney, loses a sum of money.
A is liable to repay to B his deposit, with interest, and the expense to which he is put by his detention in Calcutta, and the excess, if any, of the passage-money paid for the second ship over that agreed upon for the first, but not the sum of money which B lost by arriving in Sydney too late.