Ricardo operates a pizzeria in Newcastle. His pizzas are very popular. He contacts the local handyman,...

 

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Ricardo operates a pizzeria in Newcastle. His pizzas are very popular. He contacts the local handyman, Simon, and discusses the removal of the existing pizza oven and the installation of a wood fired pizza oven. Simon says that he would need 24 hours to install and ensure the oven was operational. Ricardo closes his pizzeria on Mondays, so he told Simon he could have access from midnight Sunday, and all of Monday, until 10 am Tuesday by which time Ricardo would need to start preparing for lunch on Tuesday. Unfortunately, the installation of the wood fired pizza took longer than expected. It was not operational until Wednesday afternoon. Ricardo suffers the following losses: - $25,000 lost profits from Tuesday lunch, Tuesday dinner and Wednesday lunch; $5,000 for the fresh food which had to be thrown out as it could not be used; $10,000 in lost profits as Ricardo had a contract to supply pizzas to the local primary school for the students' lunch on their first Wednesday back. This would have been the second year in which Ricardo had had this contract. The school turned to another café business to provide lunches and the school was happy with this, and might not use Ricardo in the future, leading to an expected loss of $10,000 each year for the foreseeable future. Advise Ricardo as to what common law damages, if any, he can recover from Simon. Explain your answer with reference to relevant cases. Ricardo operates a pizzeria in Newcastle. His pizzas are very popular. He contacts the local handyman, Simon, and discusses the removal of the existing pizza oven and the installation of a wood fired pizza oven. Simon says that he would need 24 hours to install and ensure the oven was operational. Ricardo closes his pizzeria on Mondays, so he told Simon he could have access from midnight Sunday, and all of Monday, until 10 am Tuesday by which time Ricardo would need to start preparing for lunch on Tuesday. Unfortunately, the installation of the wood fired pizza took longer than expected. It was not operational until Wednesday afternoon. Ricardo suffers the following losses: - $25,000 lost profits from Tuesday lunch, Tuesday dinner and Wednesday lunch; $5,000 for the fresh food which had to be thrown out as it could not be used; $10,000 in lost profits as Ricardo had a contract to supply pizzas to the local primary school for the students' lunch on their first Wednesday back. This would have been the second year in which Ricardo had had this contract. The school turned to another café business to provide lunches and the school was happy with this, and might not use Ricardo in the future, leading to an expected loss of $10,000 each year for the foreseeable future. Advise Ricardo as to what common law damages, if any, he can recover from Simon. Explain your answer with reference to relevant cases.

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Ricardos Potential Common Law Damages against Simon Ricardo may have a claim against Simon for breac... View the full answer