Mrs. Magda Strydom

BREACH OF CONTRACT

AND

REMEDIES FOR BREACH OF CONTRACT

BREACH OF CONTRACT AND REMEDIES THEREFORE:

Table of Contents

1. Introduction

2. Breach of Contract

2.1. Default by Debtor (mora debitoris)

2.2. Default by Creditor (mora creditoris)

2.3. Positive Default (positive malperformance)

2.4. Repudiation

2.5. Prevention of Performance (Rendering Performance Impossible)

2. Remedies for Breach of Contract

3.1. Execution of the Contract

3.1.1 Orders for specific performance

3.1.2. Orders for reduces performance

3.2. Cancellation of Contract

3.3 The act of Cancellation

3.4. Damages

3.5 Penalty Clause

3.6 Insolvency

3.7 Sequestration

3.7.1 Sequestration Simplified

3.7.2 The effect of Sequestration on a Contract

3.8 Immovable Property

3.9 Credit Agreements

1. Introduction

The primary purpose when creating contracts is their fulfilment or discharge by due and proper performance. Unfortunately not all contract end in the way. Where the intended result is not achieved as a consequence of the fault of one of the parties, that party commits breach of contract. Where one party to a contract commits breach of contract the rule of the law of contract protect the innocent party’s personal rights and grant him or her redress in the form of a legal remedy which can be enforced through an action in a court of law. Let us discuss different types of breach of contracts and remedies that’s available according to the law of today.

2. Breach of Contract

2.1. Default by debtor (moradebitoris)

A debtor commits breach of contract in the form of default of the debtor, also referred to as moradebitoris, if he or she does not perform at the agreed time,and the delay is due to the debtor’s fault. It is then said that the debtor is in mora or in default. (When the debtor has not met its legal obligations according to his/her debt contract). Example: Debtor has not made a scheduled payment, or has violated a covenant in the debt contract....