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3CONTRACTUAL DAMAGES 3.1 Read the facts below and answer the questions that follow. Solarum, a manufacturer of solar panels, sold solar panels to Fikile Construction.
3CONTRACTUAL DAMAGES 3.1 Read the facts below and answer the questions that follow. Solarum, a manufacturer of solar panels, sold solar panels to Fikile Construction. Fikile Construction was hired to install solar panels in newly developed townhouses. Fikile Construction contended that the solar panels that were sold to them were defective. They further contended that by the time they had realised that the solar panels were defective; they had already installed the defective solar panels on the roofs of fifteen (15) townhouses. They then had to remove the solar panels from the roofs of these fifteen (15) townhouses and reinstall new solar panels supplied by another manufacturer, Esolar, which cost R1 350 000. They paid transport costs of R18 000. The removal of the defective solar panels and the reinstallation of the new solar panels on the roofs of the fifteen (15) townhouses took them four (4) weeks to complete and cost them R400 000 in labour. Fikile Construction argued that the replacement of the solar panels that were bought from Esolar manufacturers were more expensive than the ones that they had agreed on in their contract with Solarum. (a) If Solarum were to argue that Fikile Construction had a duty to "mitigate their loss", explain in detailwhat this argument would be. (5 marks)(b) With reference to the fundamental principle of damages for the breach of contract, explain in detail, how Fikile Construction'sdamages would be determined in this case. (5 marks) (c) Using the "contemplation rule", provide your own assessment of Fikile Construction'stotal claim of damages
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