Question
On 04 October 2021 of Sugar Palm Farm Co-operative ('SFC') of 8 Palm Crescent, Vincent Park, Johannesburg entered into oral agreement with Mr Tractor Mechanic
On 04 October 2021 of Sugar Palm Farm Co-operative ('SFC') of 8 Palm Crescent, Vincent Park, Johannesburg entered into oral agreement with Mr Tractor Mechanic (Pty) Limited ('MTM') of 17 Beacon Business Park, Beacon Bay, Johannesburg. In terms of the agreement, MTM would repair the SFC's Massey Ferguson MF6700 R tractor (the Tractor'). The repairs were set to be done on or before 15 October 2021 and the repairs were to be done in an efficient and workmanlike. The costs of repairs was a sum of R 250000, which was paid by the SFC on 15 October 2021.
When the agreement was concluded, Mr George Benya of SFC made it clear to Mr McConarchie of MTM that their co-operative possessed only one tractor, which is the one that was the subject of repairs. The said tractor was needed for ploughing their fields on or before 20 October 2021. Moreover, it was made clear to MTM that should the tractor not be repaired properly, SFC would be unable to plough timeously. Consequently, SFC would have no summer crop and would therefore suffer a loss of income from its farming venture.
TM breached the contract by failing to properly repair the tractor in a workmanlike and efficient manner. When the tractor was returned, it was in a worse state than before. SFC had to take the tractor to Tractor World (Pty) Ltd for further repairs and it remained there for two months until 13 January 2022.
SFC's incurred a loss of income as a result of the failure of its summer crop. The said loss of income is calculated as follows: R600000, 00 (estimated value of crop) less R100000, 00 (production costs equals to R500000, 00. As a result thereof, the SFC is considering to institute claim of R500000, 00 against the MTM for the loss of income incurred pursuant to inability to plough the fields on time and failing the summer crop.
You are instructed to draft a legal opinion advising the SFC about the prospects of its claim against the MTM. In your opinion, you are required to discuss fully the principle that the loss must not be too remote. In particular, indicate how different you would plead SFC's claim so that its loss could not be considered as too remote.
NB please include SOUTH AFRICAN LEGILATION OR CASE LAW
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