Samuel and Modise enter into an agreement in terms of which Samuel undertakes to manufacture electric motors for use in the manufacturing of washing machines at an agreed price and according to certain specifications. On delivery of the motors to him, Modise pays the purchase price of the motors to Samuel. However, all the motors are materially defective in that they do not comply with the specifications and are therefore completely useless for application in the manufacturing of washing machines. Which ONE of the following statements is the CORRECT remedy to the breach of contract?

Question

Answer

If Modise elects to cancel the contract, he need not return the motors because he has suffered damage as a result of Samuel’s breach of contract.

Answer

Modise is entitled to cancel the contract and hold Samuel liable for damages suffered by him as a result of Samuel’s breach of contract.

Answer

Modise is not entitled to cancel the contract since the defect is not of such a serious nature that he cannot reasonably be expected to abide by the contract.

Answer

Because the agreement does not contain a lex commissoria (cancellation clause), Modise is not entitled to cancel the contract on the ground of Samuel’s breach of contract.

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Samuel and Modise enter into an agreement in terms of which Samuel undertakes to...

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