Solve : X contracts to sell and deliver 500 bales of cotton to V on a fixed day. X knows nothing of Y's mode of conducting business. X breaks his promise and V, having no cotton is obliged to close his mill. Is X responsible to Y ?
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Solution
Solution: Section to which the given problem relates: Section 73. Decision and Reason: X is not responsible to Y for the loss caused to Y by the closure of the mill because it is an indirect consequence of the breach of the contract.