SECTION: 4
Breach of Contract
and Associated
Remedies
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TABLE OF CONTENTS
Content
Section 4
Breach of Contract and Associated Remedies
Page
27
Overview
29
4.1
30
Assisting the Learners with this Section
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Overview
Learning Outcome
The following is the Learning Outcome of this Section:
4. Have an Overview of Breach of Contract and the Associated Remedies.
Learning
Objectives
The Learning Objectives are as follows:
On completion of this Section, the Learner must be able to:
4.
Assessment
Criteria
Have an overview of breach of Contract and the associated
remedies by:

Comprehending the different forms of breach of Contract

Realising the remedy of execution of a Contract

Realising the remedy of cancellation of a Contract

Realising the remedy of damages of a Contract
To demonstrate the achievement of the Learning Objectives, Learners are
required to meet the criteria and/or provide the following evidence:
Comprehending the different forms of breach of Contract
 Identify the different forms of breach of Contract
Realising the remedy of execution of a Contract
 Describe the remedy of execution of a Contract.
 Identify the legal remedies available to the innocent party
Realising the remedy of cancellation of a Contract
 Describe the remedy of cancellation of a Contract
Realising the remedy of damages of a Contract
 Describe the remedy of damages of a Contract
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4.
Breach of Contract and the associated remedies
4.1
Assisting the Learners with this Section
Overview of the
main concepts of
this Section
When creating Contracts, one envisage their fulfillment or discharge by due
and proper performance.
However, this is not always the case. Where the intended result is not
achieved because of the fault of one of the parties, the party commits
breach of Contract.
This Section discusses the different types of breach of Contract and the
remedies associated therewith.
Summary of key
learning points
Below is a summary of the key learning points of this Section.

Where the intended result is not achieved because of the fault of one of
the parties, the party commits breach of Contract

The forms of breach of Contract are:
 Default by the debtor
 Default by the creditor
 Positive malperformance
 Repudiation
 Prevention of performance

A debtor commits breach of Contract in the form of default (failure to pay),
if he/she does not perform at the agreed time and the delay is due to
his/her own fault

Default of the creditor occurs where the creditor causes the debtor’s
performance to be delayed

Positive malperformance occurs when the debtor commits an act, which
is contrary to the terms of the Contract

Repudiation (denial) is any behaviour by a party to a Contract indicating
that he/she does not intend to honour the obligations under the
Contract

A debtor commits breach of Contract in the form of prevention of
performance where he/she culpably (deserving blame) renders his/her
own performance impossible

The creditor commits breach of Contract if he/she renders the debtor’s
performance impossible

When a party commits breach of Contract, the law of Contract
protects the innocent party’s personal rights and grants him/her
redress in the form of a legal remedy, which can be enforced through an
action in a court of law
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4.
Breach of Contract and the associated remedies
Summary, continued

The legal remedies available to the innocent party are:
 Execution of the Contract
 Cancellation of the Contract
 Payment of damages
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4.
Breach of Contract and the associated remedies
Content covered in
the Learner Guide
The following is covered in this Section of the Learner Guide. Included is a list
of topics as well as the page numbers relevant to the Learner Guide.
TABLE OF CONTENT
Content
Page
Outline of the Learning Outcomes and Objectives
covered in this Section
85
Forms of breach of Contract
 Introduction
 Default by the debtor
 Default by the creditor
 Positive malperformance
 Repudiation
 Prevention of performance by a debtor
 Prevention of performance by a creditor
86
86
86
88
89
90
91
91
The remedy of execution of a Contract
 Introduction
 Execution of the Contract
 Specific performance
 Reduced performance
 Interdicts
92
92
92
92
92
93
The remedy of cancellation of a Contract
 Introduction
 Cancellation and default of the debtor
 Cancellation and default of the creditor
 Cancellation and defective performance
 Cancellation and repudiation
 Cancellation and prevention of performance
 Act of cancellation
 Consequences of cancellation

The remedy of damages
 Introduction
 Patrimonial loss
 Foreseeable loss
 Mitigation of damages
 Proof of loss and the calculation of damages
95
95
95
95
96
96
96
96
96
Summary
101
Conclusion
103
98
98
98
99
99
99
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4.
Breach of Contract and the associated remedies
Activities covered in
the Learner Guide
The following activities are covered in this Section of the Learner Guide.
Page Activity
87
Activity: The Learner needs to list 2 examples from his/her workplace
where breach of Contract took place and the cause/s thereof.
88
Activity: The Learner needs to investigate the possibility of THE BANK
being responsible for the delay of performance of a client and give
reasons therefore. If this is not possible, he/she needs to motivate why.
89
Activity: The Learner needs to relate the examples of malperformance
given on page 89 of the Learner Guide back to his/her own workplace
and give an example of each.
90
Activity: The Learner needs to give an example of repudiation from the
workplace. He/she needs to investigate if it is possible that a client
could deny that he/she concluded an agreement.
7492
Activity: The Learner needs to list an example where a client
committed breach of Contract where the client is liable for prevention of
performance. The Learner needs to investigate if it is possible that
THE BANK can prevent a client from performance.
94
Activity: The Learner needs to discuss the remedies with his/her
manager and investigate if there are additional remedies/procedures/
systems in place in the event of breach of Contract.
97
Activity: The Learner needs to investigate under what circumstances
the remedy of cancellation will take place and if a Contract can be
cancelled because of the non-performance on the side of THE BANK.
100
Activity: The Learner needs to discuss the remedy of damages with
his/her manager and investigate the procedure for the claiming of
damages on breach of Contract. The Learner needs to investigate
when, and under what circumstances claiming of damages will take
place, and if it is at all possible that damages can be claimed as a
remedy on the breach of Contract.
102
Activity: Self-explanatory. The Learner needs to note additional
learning points or draw a mind-map of the learning points in the space
provided.
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