There is a stark difference between the defaulting party breaching an agreement which results in the cancellation of the agreement and the termination of an agreement by either of the parties.

Where a defaulting party breaches the agreement, the aggrieved party can elect to cancel same. This will have certain ramifications such as a restitution of obligations already performed and in certain circumstances, a damages claim.

In terminating an agreement – either in terms of the agreement, or in terms of specific legislation – it has the effect that the agreement has come to an end and that the parties will walk away and no longer have further remedies against each other, except as determined in terms of the agreement, or the applicable legislation. 

For more information, please contact Stefan Hougaard, Senior Associate and litigation Attorney at STBB Claremont

021 673 4700

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