APPENDIX A: ASSESSMENT COVER SHEET

ASSESSMENT COVER SHEET

Surname Khumalo

First Name/s Olivia

Student Number 186117

Subject Business Law

Assessment Number Formative Assessment 2

Tutor’s Name

Date Submitted 08 May 2023

Submission () First Submission Resubmission

Bothma Branding Solutions

Postal Address

90 Escom Road

Unit 10 Dura Industrial Park

New Germany, Durban 3610

E-Mail Oliviakh96@gmail.com
(Work) 087 288 3001
(Home) n/a
Contact Numbers
(Cell) 067 832 1924

Course/Intake January 2023 First Semester

Declaration: I hereby declare that the assignment submitted is an original piece of work produced by myself.

Signature: Date:
Question 1

Five Special Clauses:

1. Arbitration Clause: When two or more parties come into a legal agreement through a
contract, (Mr. Naidoo and Mr. Sanders intend on coming into a legal agreement) the
parties may decide to introduce an Arbitration Clause. This clause means that if a dispute
occurs between Mr. Naidoo and Mr. Sanders, they will solve the dispute by going to a
qualified arbitrator rather than going to the court. It is done as an attempt to solve the
disputes peacefully and in a time-effective manner. A qualified arbitrator is a person who
will act as a neutral party to the dispute between Mr. Naidoo and Mr. Sanders in the
contract and will help them resolve the dispute reasonably.

2. Non – Variation Clause: A non-variation clause states that any changes to the terms of
the contract must be made in writing and approved by both Mr. Naidoo and Mr. Sanders.
This clause is key as it guarantees that the contract's terms are consistent and cannot be
changed without the agreement of Mr. Naidoo and Mr. Sanders.

3. Jurisdiction – Mr. Naidoo and Mr. Sanders may agree that should a dispute arise
regarding the contract, the matter will be referred to a specific court. This clause is
important because Both Mr. Naidoo and Mr. Sanders make the process of resolving
conflicts clear.

4. Indemnity Clause - A contract may contain an indemnity clause as a special provision

to shield one party from potential loss or damage resulting from a particular occurrence or
scenario. This clause is crucial because it gives the parties (Mr. Naidoo and Mr. Sanders)
to the contract a sense of security by guaranteeing their protection from any possible
losses that might arise because of the situation or incident described in the clause.

5. Cancellation Clause - Cancellation Clause is a provision that outlines the

circumstances under which the contract may be terminated. The clause may define the
notice period, the reasons for termination, and the consequences of termination, such as
payment of damages or forfeiture of deposits. The termination clause is important as it
provides an exit strategy for the parties (Mr. Naidoo and Mr. sanders) in case of breach,
frustration, or any other valid reason.
Question 2

Five remedies for

1. Specific Performance: This remedy requires the party who breached the contract to
complete their obligations as agreed upon in the contract. For example, if Mr. Sanders
does not produce the agreed-upon quantity of cement monthly, Mr. Naidoo may seek
specific performance to compel Mr. Sanders to deliver the quantity that was stipulated in
the contract.

2. Damages: This remedy forces the party who breached the contract to reimburse them
with a sum of money for the damage they incurred because of the breach. For instance, if
Mr. Sanders fails to produce the agreed-upon quantity of cement each month, Mr. Naidoo
may seek damages to compensate for any losses that have resulted from the breach, such
as having to obtain cement from a more expensive supplier than originally planned.
Another example is if Mr. Sanders breaches the contract by delivering defective cement,
Mr. Naidoo may claim damages to cover the cost of replacing the defective cement.

3. Cancellation: This remedy allows the innocent party to cancel the contract and restore
the parties to their original positions before the contract's formation. Cancellation is
available when the contract was formed due to fraud, mistake, duress, or undue influence.
For example, if Mr. Sanders induced Mr. Naidoo to come into the contract by making
false representations about the quality of the cement, Mr. Naidoo may seek Cancellation
of the contract.

4. Interdict: Interdict is a remedy that allows the court to amend the

contract's terms to reflect the parties' true intentions. Reformation is available when there
was a mutual mistake or a unilateral mistake by one party that the other party knew or
should have known about. For example, if Mr. Sanders and Mr. Naidoo agreed on a price
for the cement, but there was a mistake in recording the price in the contract, reformation
may be an appropriate remedy.

5. Declaratory Order: This is a kind of legal redress that forbids the party that
broke the contract from taking any actions that would result in the innocent party
suffering additional injury. For instance, in the case that Mr. Sanders violates a
non-compete clause by beginning a cement supply business that is in direct
competition with Mr. Naidoo's, Mr. Naidoo may seek an injunction to prevent Mr.
Sanders from continuing to operate the business in question.

Sources Format
Websites Sep 22 
  Written By HJW Attorneys ,
Remedies to a breach of a settlement
1 agreement
  Olga Asheychik
Senior Web Analytics Manager at
2 PandaDoc
  A quick look at different types of
  Contract clause
  Tuesday, 10 January 2023
https://www.pandadoc.com/blog/types-
  of-contract-clauses/
Books  
Du Plessis, J. J. (2017).
Introduction to the Law of Contract
3 (6th ed.) LexisNexis.
Kopel, S. 2017. Guide to Business
Law.6th ed. Cape Town: Oxford
4 University Press.
McGregor M (ed) et al Labour Law Rules
5 2ed (2014) Siber Ink