If the claimant suffers consequential loss as a result of the property damage, such as expense incurred or profits lost as a result of the destruction of a ship subject to a charterparty, that loss is recoverable, except where it amounts to loss of general future profit. The claimant may also recover for the cost of hiring a substitute until the replacement is available. : The claimant is entitled to recover in respect of both losses caused and gains prevented by the breach of contract. This necessitates making a deduction where the claimant has saved money or has made a gain as a result of the breach. In British Westinghouse Co Ltd v Underground Electric Railways Ltd,

doi:10.4324/9781843141518-269

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Viscount Haldane: The arbitrator appears to me to have found clearly that the effect of the superiority of the Parsons’ machines and efficiency in reducing working expenses was, in point of fact, such that all loss was extinguished and that actually the respondents made a profit by the course which they took. They were doubtless not bound to purchase machines of a greater kilowatt power than those originally contracted for, but they, in fact, took the wise course in the circumstances of doing so, with pecuniary advantage to themselves. They had, moreover, used the appellants’ machines for several years and had recovered compensation for the loss incurred by reason of these machines not being during these years up to the standard required by the contract. After that period, the arbitrator found that it was reasonable and prudent to take the course which they actually did in purchasing the more powerful machines, and that all the remaining loss and damages was thereby wiped out.