LLexiSA

Commercial Law

Contract Disputes and Breach

South African contract law is based on the common law: agreements seriously entered into must be honoured (pacta sunt servanda), tempered by constitutional values of fairness and ubuntu. On breach, the innocent party may claim specific performance, cancel (for material breach), and/or claim damages.

Key facts

  • Verbal contracts are generally binding — writing is only required for certain contracts (e.g. sale of land, suretyship).
  • Specific performance is a primary remedy in South African law, unlike in English law.
  • Contractual claims prescribe (expire) after 3 years from when the debt is due.
  • A breach must be material to justify cancellation unless the contract provides a cancellation clause (lex commissoria).

The law that applies

  • Prescription Act 68 of 1969 — ss 10–12
  • Consumer Protection Act 68 of 2008 — ss 48–52 (where applicable)

Leading cases

Barkhuizen v Napier 2007 (5) SA 323 (CC)

Contract terms are tested against public policy, infused with constitutional values.

Beadica 231 CC v Trustees, Oregon Trust [2020] ZACC 13

Fairness and ubuntu inform but do not replace the rule that contracts must be honoured.

Practical steps

  1. Review the contract terms, especially breach and notice clauses.
  2. Send a written demand giving the defaulting party time to remedy the breach.
  3. Choose your remedy: enforce, cancel and/or claim damages.
  4. Sue in the Small Claims Court (≤ R20 000), Magistrates' Court or High Court depending on value.

Frequently asked questions

Is a WhatsApp agreement legally binding?

Generally yes, if the essential elements of a contract are present (offer, acceptance, intention, certainty). WhatsApp messages regularly serve as evidence of contract terms in South African courts.

How does this apply to your situation?

Ask LexiSA. It will gather your facts, apply the law above, and give you a cited assessment of your position — free.

Ask about commercial law

This guide is legal information, not legal advice, and may not reflect amendments after its last review. For advice on your specific circumstances, consult a practising attorney.