Don’t forget that this is close book. You
must never write court case in full please.
Paraphrase well
Question 4
Jabulani Bricks (hereafter Jabulani) operates a brick factory. Kelly-Anne is an employee
of Mighty Worx, a construction business (hereafter Mighty). Mighty is preparing a
construction site, adjacent to Jabulani’s premises, for the construction of a new factory.
While working on the site, Kelly-Ann, who is operating Mighty’s excavating machinery,
negligently cuts an underground electricity cable supplying electricity to Jabulani. As a
result, Jabulani’s factory comes to a halt. Due to logistical and other challenges, it takes
several weeks for Jabulani’s electricity supply to be restored. The unscheduled
shutdown causes damage to Jabulani’s equipment, necessitating repairs amounting to
R300 000. Jabulani is also unable to meet customers’ demand to supply bricks and
Jabulani’s profit drops to R200 000, appreciably lower than the amount of R700 000 it
has more or less consistently been able to earn in a similar timespan before the
interruption of the electricity supply. Williams’ Builders, which has recently entered into a
longer-term contract (worth R 1 million) with Jabulani, cancels its contract with Jabulani
because Jabulani has been unable to fulfil its contractual obligations to Williams’
Builders. Jabulani’s projected future profit from this contract, after deducting running
expenses, was substantial (R600 000).
4.1 Explain whether Jabulani Bricks has sustained loss or damage and, if so, what
delictual remedy/remedies it may rely upon. If applicable, also indicate briefly how the
amount of damages will be determined.
The Aquilian action can generally be used to seek compensation for purely economic
losses. To clarify the concept, it is important to begin by clearly defining what is meant
by "pure economic loss." Pure economic loss can include financial loss that does not
arise from damage to physical property or harm to personal well-being. Pure economic
loss can be defined as financial loss that results from damage to property or harm to an
individual, but does not involve the plaintiff's own property or person. Alternatively, if it
does involve the plaintiff's property or person, the damage or injury was not caused by
the defendant. To establish liability for pure economic loss, it is essential that the
actions of the wrongdoer meet the general requirements for a tort.
must never write court case in full please.
Paraphrase well
Question 4
Jabulani Bricks (hereafter Jabulani) operates a brick factory. Kelly-Anne is an employee
of Mighty Worx, a construction business (hereafter Mighty). Mighty is preparing a
construction site, adjacent to Jabulani’s premises, for the construction of a new factory.
While working on the site, Kelly-Ann, who is operating Mighty’s excavating machinery,
negligently cuts an underground electricity cable supplying electricity to Jabulani. As a
result, Jabulani’s factory comes to a halt. Due to logistical and other challenges, it takes
several weeks for Jabulani’s electricity supply to be restored. The unscheduled
shutdown causes damage to Jabulani’s equipment, necessitating repairs amounting to
R300 000. Jabulani is also unable to meet customers’ demand to supply bricks and
Jabulani’s profit drops to R200 000, appreciably lower than the amount of R700 000 it
has more or less consistently been able to earn in a similar timespan before the
interruption of the electricity supply. Williams’ Builders, which has recently entered into a
longer-term contract (worth R 1 million) with Jabulani, cancels its contract with Jabulani
because Jabulani has been unable to fulfil its contractual obligations to Williams’
Builders. Jabulani’s projected future profit from this contract, after deducting running
expenses, was substantial (R600 000).
4.1 Explain whether Jabulani Bricks has sustained loss or damage and, if so, what
delictual remedy/remedies it may rely upon. If applicable, also indicate briefly how the
amount of damages will be determined.
The Aquilian action can generally be used to seek compensation for purely economic
losses. To clarify the concept, it is important to begin by clearly defining what is meant
by "pure economic loss." Pure economic loss can include financial loss that does not
arise from damage to physical property or harm to personal well-being. Pure economic
loss can be defined as financial loss that results from damage to property or harm to an
individual, but does not involve the plaintiff's own property or person. Alternatively, if it
does involve the plaintiff's property or person, the damage or injury was not caused by
the defendant. To establish liability for pure economic loss, it is essential that the
actions of the wrongdoer meet the general requirements for a tort.
