Answer the following using South African law of contract and law of delict
.QUESTION 11
Select the most correct ending to the sentence below "The 'positive interest' that accrues to damage claims includes
A The actual patrimonial loss as well as the loss of profit
B The plaintiff (innocent party) must be placed in the financial position he would have been in had it not been for breach of contract, in so far as he can be place in this position by the payment of money and without due hardship to the defaulting party
C A and B
D Special damages
QUESTION 15
Select the most correct explanation for the "mitigation rule".
A. Defendant must prevent the accumulation of his damages.
B. Plaintiff must take preventative steps against further damages
C. Plaintiff must incur every expense to prevent an increase in damages
D. Plaintiff can only claim once for all the damages.
question 19.
Identify the most appropriate remedy for the facts provided. Y sells his dental practice to X. The contract of sale includes a restraint of trade agreement in terms of which Y undertakes not to practice as a dentist in Johannesburg for two yearsY then attempts to breach the contracted restraint on trade clause,
A Special damages
B. General damages
C interdict
D Cancellation
question 18.
Select the most accurate statement to complete the sentence"A court is likely to refuse a specific performance order and not exercise their judicial discretion
A. When it would be against public policy and would bring about an unjust outcome.
B When the there is a claim for damages that provides sufficient redress
C when there are special circumstances
D When it is difficult for the court to supervise the execution of the order for specific performance
QUESTION 17
Select the statement that is the most true and accurate.
A. A party cannot claim cancellation and specific performance simultaneously because the one remedy ends the contract and the other upholds it
B.A party cannot claim cancellation and specific performance because cancellation is based on the contract and specific performance is based on the breach
C.A party can claim cancellation and specific performance.
D. A party can claim specific performance if a party repudiates the contract
QUESTION 12
"The effect of cancellation is to...". Select the most appropriate ending for this sentence
A. End the contractual obligations between the parties.
B End the legal consequences of the obligations between the parties.
C. Bind the parties to the legal consequences of the breach of contract
D.A and C
question 16
Select the most appropriate remedy that will apply to the facts provided. A sells his stud bull to B for R10 000 to mate with B's cows. The parties agree that A will deliver the stud bull to B on payment of a R5000 deposit. They agree that B will pay the remainder of the purchase price in monthly instalments of R1000 over the next five months. B pays the R5000 deposit and A delivers the bull. However, the stud bull turns out to be impotent.
A. A commits a breach of negative malperformance B should abide by the contract and obtain a specific performance order forcing A to comply
B. A commits a breach of positive malperformance B should elect to cancel the contract B must return the bull to A. A must return the R5000 deposit to B Cancellation terminates future obligations.
C. A commits a breach of contract B has damages claim for R10 000 for the bull plus R5 000 for the deposit
D. The parties should uphold the contract and B should obtain a specific performance order for A to remedy the defect Cancellation is only in extraordinary circumstances
Question 13.
"Cancellation is a remedy only for exceptional circumstances"Select the most correct meaning of this statement.
A.Because the breach must be of a serious material nature
B.Because a party cannot simultaneously ask for specific performance and cancellation
C.Because it requires restorative consequences.
D.A and C
Question 10. Select the most accurate answer to complete the sentence below"Specific performance orders are commonly executed by.
A Prosecutors
B Organs of state
C. Judicial officers
D. Registrar of Deeds
QUESTION 14
Select the correct requirements for a damages claim.
A. Breach of contract, fault or negligence, actual damages
B. Personal injury, factual and legal causation, breach of contract
C.Patrimonial loss, breach of contract, factual causation, legal causation
D. C and A
QUESTION 8
Identify the nature or type of damages that has occurred in the facts provided. X is a builder who buys bricks from Y for a particular building jobX and Y agree that Y will deliver the bricks on 1 July to the building site. HoweverY fails to deliver the bricks on the agreed date X needs bricks urgently to continue with the building job and the delay costs him a loss of R1000 a day. X can ask for an order of specific performance against Y to deliver the bricks and claim damages for his loss of R1000 a day until delivery is made.
A. Damnum emergens.
B. Lucrum cessans
C. Consequential damages
D. Special damages
Question 9
Select the correct answer that best describes the type of damagesJackie and Ntando are 50/50 partners in the business of stock investments. Jackie and Ntando agree to invest in Vodacom stocks equally in the amount of R 100 000.00The partners anticipate an interest profit of R200 000.00 from their investmentNtando invests his 50% but Jackie forgets to do the same. The business experiences a loss of interest on the contracted investment amount
A General DamagesThe loss of interest flows naturally from the failure of Jackie to make the agreed investment
B. Special Damages. The loss of interest is too remote to the failure of Jackie to make the agreed investment
C.The general rule is that Jackie cannot be held responsible for the special damages
D.Damnum emergens
Question 2.
Identify the remedy that would best suit Y from the facts provided Y is planning her graduation party and asks a caterer to make the food for the event Y provides the caterer with the menu who then provides Y with the total cost. Y pays the caterer in advance and in full. On the graduation day, the caterer only serves half the menu items. Y is disappointed.
A Specific performance, ordering the caterer to fix the problem immediately.
B. prohibitory interdict, ordering the caterer to stop serving the wrong food.
C. Damages for the monetary equivalent of the food that was not served
D. Cancellation for the serious breach of contract restoring the parties the position they were in
QUESTION 1
Specific performance is a remedy not based on breach but on the contract. Select the most correct answer from the multiple-choice questions below.
A Because the court order seeks to uphold the contract.
B. Because no breach occurs for a specific performance order to apply.
C Because specific performance is a primary remedy
D. Because performance in forma specifica refers to performance of that on which the contractants agreed.
E. A and D
QUESTION 4
Select the case law that best suits the set of facts. "A plaintiff had a contractual claim to regularly receive a certain quantity of water from the town dam Irrespective of a severe drought and a shortage of water, the plaintiff claimed specific performance The court refused to grant the specific performance order, as such an order would have been contrary to public interest"
A. Farmer's Co-operative Society v Berry 1912 AD 343
B. Haynes v King William's Town Municipality 1951 (2) SA 371(A)
C. Benson v SA Mutual Life Assurance Society 1986 (1) SA 776 (A)
D. Holmdene Brickworks (Pty) Ltd v Roberts Construction Co Ltd 1977 (3) SA 670 (A)
Question 5.
Complete the sentence by selecting the most correct ending to the sentence"Damage claims in contract law can differ to damage claims in delict, one such difference is that.
A. Claims for damages based on contract are patrimonial in nature.
B. Claims for damages based on contract exclude claims for injury to personality rights
C. Claims for damages based on contract require experts whereas delict damages do not
D. Claims for damages based on contract exclude constitutional damages
Question 7
What must be proven for a claim for Special damages? Select the most correct answer
A. The parties contemplated the possibility of the damages.
B.Special damages is not claimable
C. The parties contracted for the special circumstances expressly
D. A and C
QUESTION 6
Select the statement that is the most false and inaccurate
A Cancellation and Termination is the same because both ends the contract by juristic act
B A party can lose the right to cancel by lapse of reasonable time whereas time clauses do not apply to termination
C Supervening impossibility excludes cancellation
D Cancellation and Termination is not the same because termination is by operation of law and cancellation is a breach of contract remedy
QUESTION 7
What must be proven for a claim for Special damages? Select the most correct answer
A. The parties contemplated the possibility of the damages
B Special damages is not claimable
C. The parties contracted for the special circumstances expressly
D. A and C
QUESTION 3
Select the statement that does not fit the provisions of the Conventional Penalties Act 15 of 1962
A. A reduction of a penalty is allowed by the court if it appears to the court that the penalty is out of proportion to the prejudice suffered by the creditor
B. A creditor is not entitled to recover both damages and the penalty in a specific instance unless the contract expressly provides for both
C. Penalties may take the form of a sum of money or delivery of a thing.
D.A party that terminates the contract must claim everything and all amounts simultaneously from the other party
Question 11: C. A and B
Question 15: B. Plaintiff must take preventative steps against further damages
Question 19: C. Interdict
Question 18: D. When it is difficult for the court to supervise the execution of the order for specific performance
Question 17: A. A party cannot claim cancellation and specific performance simultaneously because the one remedy ends the contract and the other upholds it
Question 12: A. End the contractual obligations between the parties.
Question 16: C. A commits a breach of contract B has a damages claim for R10,000 for the bull plus R5,000 for the deposit
Question 13: A. Because the breach must be of a serious material nature
Question 10: C. Judicial officers
Question 14: C. Patrimonial loss, breach of contract, factual causation, legal causation
Question 8: B. Lucrum cessans
Question 9: A. General Damages. The loss of interest flows naturally from the failure of Jackie to make the agreed investment
Question 2: C. Damages for the monetary equivalent of the food that was not served
Question 1: D. Because performance in forma specifica refers to performance of that on which the contractants agreed.
Question 4: B. Haynes v King William's Town Municipality 1951 (2) SA 371(A)
Question 5: A. Claims for damages based on contract are patrimonial in nature.
Question 7: A. The parties contemplated the possibility of the damages.
Question 6: A. Cancellation and Termination is the same because both ends the contract by juristic act
Question 7: A. The parties contemplated the possibility of the damages
Question 3: D. A party that terminates the contract must claim everything and all amounts simultaneously from the other party
Answer 11: C A and B. The 'positive interest' that accrues to damage claims includes both the actual patrimonial loss as well as the loss of profit. The plaintiff (innocent party) must be placed in the financial position he would have been in had it not been for breach of contract, in so far as he can be placed in this position by the payment of money and without due hardship to the defaulting party.
Answer 15: B. The "mitigation rule" requires the plaintiff to take preventative steps against further damages. The plaintiff must incur every expense to prevent an increase in damages.
Answer 19: C interdict. The most appropriate remedy for the breach of the restraint of trade agreement would be to obtain an interdict to prevent Y from practicing as a dentist in Johannesburg for two years.
Answer 18: B When the there is a claim for damages that provides sufficient redress. A court is likely to refuse a specific performance order and not exercise their judicial discretion when there is a claim for damages that provides sufficient redress.
Answer 17: A. A party cannot claim cancellation and specific performance simultaneously because the one remedy ends the contract and the other upholds it. A party cannot claim cancellation and specific performance simultaneously because the one remedy ends the contract and the other upholds it.
Answer 12: D.A and C. The effect of cancellation is to end the contractual obligations between the parties and bind the parties to the legal consequences of the breach of contract.
Answer 16: C. A commits a breach of contract and B has a damages claim for R10 000 for the bull plus R5 000 for the deposit. A commits a breach of contract and B has a damages claim for R10 000 for the bull plus R5 000 for the deposit.
Answer 13: A.Because the breach must be of a serious material nature. Cancellation is a remedy only for exceptional circumstances because the breach must be of a serious material nature.
Answer 10: C. Judicial officers. Specific performance orders are commonly executed by judicial officers.
Answer 14: C. Patrimonial loss, breach of contract, factual causation, legal causation. The correct requirements for a damages claim are patrimonial loss, breach of contract, factual causation, legal causation.
Answer 8: B. Lucrum cessans. The nature or type of damages that has occurred in the facts provided is lucrum cessans, which is the loss of profit or anticipated benefits.
Answer 9: A General damages. The correct type of damages that best describes the situation is general damages. The loss of interest flows naturally from the failure of Jackie to make the agreed investment.
Answer 2: C. Damages for the monetary equivalent of the food that was not served. The most appropriate remedy that would suit Y in this case is to claim damages for the monetary equivalent of the food that was not served.
Answer 1: A. Because the court order seeks to uphold the contract. Specific performance is a remedy not based on breach but on the contract itself, and it seeks to uphold the contract.
Answer 4: C. Benson v SA Mutual Life Assurance Society 1986 (1) SA 776 (A). The case law that best suits the set of facts is Benson v SA Mutual Life Assurance Society 1986 (1) SA 776 (A), where the court refused to grant a specific performance order that would have been contrary to public interest.
Answer 5: A. Claims for damages based on contract are patrimonial in nature. One difference between damage claims in contract law and delict is that claims for damages based on contract are patrimonial in nature.
Answer 7: A. The parties contemplated the possibility of the damages. For a claim for special damages, it must be proven that the parties contemplated the possibility of the damages.
Answer 6: B A party can lose the right to cancel by lapse of reasonable time whereas time clauses do not apply to termination. The statement that is most false and inaccurate is that a party can lose the right to cancel by lapse of reasonable time, whereas time clauses do not apply to termination.
Answer 7: D. A and C. For a claim for special damages, it must be proven that the parties contemplated the possibility of the damages and that the parties contracted for the special circumstances expressly.
Answer 3: D.A party that terminates the contract must claim everything and all amounts simultaneously from the other party. The statement that does not fit the provisions of the Conventional Penalties Act 15 of 1962 is that a party that terminates the contract must claim everything and all amounts simultaneously from the other party.
ANSWER 11: The most correct ending to the sentence is option C: A and B. The 'positive interest' that accrues to damage claims includes both the actual patrimonial loss as well as the loss of profit. The plaintiff (innocent party) must be placed in the financial position he would have been in had it not been for the breach of the contract, in so far as he can be placed in this position by the payment of money and without due hardship to the defaulting party.
To determine this, you would need to refer to the South African law of contract. The law of contract states that when a breach of contract occurs, the innocent party is entitled to claim a remedy known as positive interest, which includes compensation for the actual patrimonial loss suffered as well as the loss of profit. This is aimed at putting the innocent party in the same financial position they would have been in had the contract been properly performed.
You can refer to the South African law of contract textbooks or search for relevant cases that discuss the concept of positive interest in damage claims.