LAW OF DAMAGES
LPL4802
ASSIGNMENT 01
SEMESTER 1 2024
UNIQUE NUMBER 532535
DUE DATE 28 MARCH 2024
, In Transnet Ltd v Sechaba Photoscan (Pty) Ltd (2005) (1) SA 299 SCA,
the Court expressed the view that: “it is now beyond question that
damages in delict (and contract) are assessed according to the
comparative method “ @ [15]. Write an essay where you discuss the
validity and or relevance of this statement with regard to the
assessment of damage/s in the South African law of damages
jurisprudence.
In your discussion, consider the sum formula approach and the
concrete concept of damage. NB. Do not include positive and
negative interesse in your discussion.
Summary of facts
Introduction
The case in question centers around the contentious aftermath of a fraudulent tender
process conducted by Transnet Ltd, a parastatal corporation, for the sale of its division,
Transnet Production House. A pivotal legal query emerged: whether the loss of
prospective profits is compensable in law as delictual damages. This essay provides
a thorough exploration of the court's analysis, legal arguments, and the consequential
outcome in this judgment, together with an analysis of the comparative methods used
to assess damages.
Legal Issues
The primary legal focus revolved around the compensability of prospective profits as
delictual damages. During the trial, the appellant, Transnet, conceded liability but
contested the nature of damages claimed by the respondent. The critical issue shifted
to the quantum of damages, particularly whether the respondent could seek
compensation for the lost profits it would have accrued had it been awarded the
contract.
Legal Arguments
The appellant's primary submission was anchored in dictum from Trotman v Edwick,
citing a case emphasizing the recovery of losses resulting from wrongful conduct.
LPL4802
ASSIGNMENT 01
SEMESTER 1 2024
UNIQUE NUMBER 532535
DUE DATE 28 MARCH 2024
, In Transnet Ltd v Sechaba Photoscan (Pty) Ltd (2005) (1) SA 299 SCA,
the Court expressed the view that: “it is now beyond question that
damages in delict (and contract) are assessed according to the
comparative method “ @ [15]. Write an essay where you discuss the
validity and or relevance of this statement with regard to the
assessment of damage/s in the South African law of damages
jurisprudence.
In your discussion, consider the sum formula approach and the
concrete concept of damage. NB. Do not include positive and
negative interesse in your discussion.
Summary of facts
Introduction
The case in question centers around the contentious aftermath of a fraudulent tender
process conducted by Transnet Ltd, a parastatal corporation, for the sale of its division,
Transnet Production House. A pivotal legal query emerged: whether the loss of
prospective profits is compensable in law as delictual damages. This essay provides
a thorough exploration of the court's analysis, legal arguments, and the consequential
outcome in this judgment, together with an analysis of the comparative methods used
to assess damages.
Legal Issues
The primary legal focus revolved around the compensability of prospective profits as
delictual damages. During the trial, the appellant, Transnet, conceded liability but
contested the nature of damages claimed by the respondent. The critical issue shifted
to the quantum of damages, particularly whether the respondent could seek
compensation for the lost profits it would have accrued had it been awarded the
contract.
Legal Arguments
The appellant's primary submission was anchored in dictum from Trotman v Edwick,
citing a case emphasizing the recovery of losses resulting from wrongful conduct.
