A agreed to deliver a critical machine part to B's factory by 1 June. A, unaware that B had no spare part, delivered it on 10 June. B sued A for the loss of profits of the factory during the idle period. Under Section 73 of the Indian Contract Act 1872, B is entitled to -

Section 73 of the Indian Contract Act 1872 provides that compensation for breach of contract is payable for the loss or damage which arose naturally in the usual course of things from the breach, or which the parties knew at the time of the contract to be likely to result from it. This is the rule of remoteness of damage derived from Hadley v. Baxendale. B's loss of profits arose from special circumstances, the absence of a spare part, which were not communicated to A when the contract was made, and A had no knowledge that the delay would stop the factory. That special loss is too remote and cannot be recovered. Loss of profits is not recoverable merely because the buyer's business depended on the part.