Abstract

Price reduction should be recognised as a generalised remedy for breach of contract. Price reduction is already recognised in sale and lease contracts. The Consumer Protection Act 68 of 2008 also provides for it in respect of services. It should also be available in other contract types (subject to special regulation for contract types where there is structural inequality between the parties). For example, price reduction is necessary in contracts to do a piece of work (locatio conductio operis). The costs order and court’s statement on costs orders in BK Tooling (Edms) Bpk v Scope Precision Engineering (Edms) Bpk 1979 (1) SA 391 (A) demonstrate that the court’s dicta on the exceptio non adimpleti contractus and the judicial discretion to relax it did not reflect what was expected of the aggrieved party on the facts. Since the aggrieved party was in fact expected to reduce the price extra-judicially in the circumstances, there should be recognition of and rules on such a self-help remedy at the instance of the aggrieved party. There is growing recognition of the utility of generalised price reduction internationally. South African law should follow suit. This contribution also proposes detailed rules on the price-reduction remedy.