Question
Andile buys a 3-piece lounge set from ABD furniture stores for R30 000. The store undertakes to deliver the lounge set at Andile's home in
Andile buys a 3-piece lounge set from ABD furniture stores for R30 000. The store undertakes to deliver the lounge set at Andile's home in Acacia within 48 hours of the purchase. A week later, Andile still has not received the lounge set and not a word from the store either. Andile decides to call ABD stores to find out why the lounge suit has not been delivered and when he can expect delivery. The manager assures him that the furniture will be delivered within 24 hours. However, when the furniture was eventually delivered to his home, it was not the lounge set he ordered, but a different one that is worth only R20 000.
There was a note that the lounge set he ordered was not in stock any longer, which is why a different set was delivered. Andile was very unhappy about this and refused to accept the lounge set that was delivered. He then went to EFG Furniture stores, which is in the same neighbourhood as ABD furniture stores and bought a different lounge set for R40 000.
Now answer the question below:
The law requires the courts to consider the "market value" of the res vendita as a substitute for the thing sold in the event that the seller fails or neglects to deliver the thing.
Explain the nature of the damages in this case. Fully discuss the meaning and nature of the concept "market value" that is used in the assessment of contractual damages. Refer to authority to substantiate your answer. Also indicate how Andile's damages will be assessed.
If the market price rule may not be used, on what other evidence may the court rely to calculate the value of the res vendita?
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