Fantchip Pty Ltd entered a one-year contract to manufacture and supply Motorplus Pty Ltd with 1000 computer microchips that were to be delivered on the first day of every month. Motorplus to Fastchip it was essential that the microchips arrive on time, but did not reveal it was fitting the microchips into a new computer being supplied to Sabaru Lid, and that Subaru was its only customer. In the fifth month, Fastchip's outdated equipment broke down and it was unable to supply Motorplus for two months. During that time, Motorplus tried desperately but could not obtain sufficient supplies of microchips. Consequently, it lost its contract with Sabaru

Motorplus sued Fastchip for:

- Its loss of normal business profit during the two month it was not supplied with microchips

- The profit it could reasonably have expected from the Subaru contract.

Explain if these claims are likely to be successful.

Answer rating: 100% (QA)

ANSWER The success of Motorpluss claims against Fastchip would depend on various legal principles and factors including contractual obligations forese... View the full answer