Remedies for Breach of Contract - Week 5/6

Question 1

What is a breach of contract?

Answer 1

A failure to perform contractual obligations without legal justification

Question 2

What are the forms of breach of contract?

Answer 2

Anticipatory Breach – notice of intention not to perform

Failure to perform – material breach (repudiation)

Delayed performance – may be material depending on terms

Defective performance – must assess materiality

Question 3

What are the types of remedies for breach of contract?

Answer 3

Self-help Remedies:
* Rescission – walk away from the contract (if material breach)
* Retention and Lien

Judicial Remedies:
* Specific implement / Interdict – court orders to perform obligations
* Damages – monetary compensation

Question 4

What are damages in contract law?

Answer 4

Damages are monetary compensation awarded to cover loss caused by breach of contract

Question 5

What factors limit the amount of damages awarded?

Answer 5

Minimisation of loss – party must take reasonable steps to reduce loss

Remoteness of damage – only losses that are reasonably foreseeable are compensated

Question 6

What is the difference between normal and abnormal loss?

Answer 6

Normal loss – foreseeable in ordinary circumstances → general damages

Abnormal loss – foreseeable only with actual knowledge of special circumstances → special damages

Question 7

What are conventional or liquidate damages?

Answer 7

Damages agreed in advance in the contract

Enforceable if they are a genuine pre-estimate of loss
Example: delay clauses or sliding scale of damages