On 01 May 2015, the management of Netcare concluded a contract with Build-IT Building Contractors, in terms of which the construction company undertook to build one Medical Suite Block, consisting of 50 suites of 3 rooms, a waiting room, Doctors consulting room, reception area and kitchenette. The contract stipulated that the building would be completed by 15 December 2015.

The contracting parties also agreed to the following:

a) If the hostels are not completed by 15 December 2015, Build-IT Building Contractors would be liable for an amount of R10 000 per day delayed after 15 December 2015.

b) Ten percent of the contract price would be held back until Mr. Smith, Netcares architect, issues a final certificate.

Evaluate which form of breach of contract, if any, has been committed in each of the following independent situations. Provide reasons in support of your evaluation.

2.2.1 Build-IT Building Contractors only completes the work on 7 January 2015. The delay is caused by serious floods resulting from an unforeseeable cyclone in September 2015. (5)

2.2.2 Build-IT Building Contractors only completes the work on 10 January 2015. The delay is caused by a week-long strike by the construction companys employees. (5)

2.2.3 On 6 January 2015, Mr. Smith issues a final certificate, but owing to a cash flow problem, Netcare does not pay the outstanding balance on the contract price. (5)