A comparative analysis of cancellation, discharge and avoidance as a remedy for breach of contract in South African law, English law and the Convention for International Sale of Goods (CISG)

Abstract

The aim of the thesis was to critically compare termination of contracts in South Africa, England and the CISG. It was found out that South Africa prefers to use the term cancellation because it is a remedy of last resort. The problem with cancellation is that is a drastic step of bringing the transaction to an abrupt and premature end, which is only used when a material breach occurs. English law uses the term discharge as it refers to the ending of the obligations under the contract when a breach occurred and represents the point at which one party is no longer bound by its’ contractual obligations and claims damages. Chapter 3 argued that though discharge goes beyond cancellation it does not cater for diverse domestic rules which need uniform international laws. Chapter 4 discussed and argued that avoidance is a term that was chosen by the CISG to end a contract when a fundamental breach occurs. There were problems on interpretation of terms and use of diverse domestic rules. The advantage of the term avoidance is that it is a technical term adopted and given a uniform meaning in the CISG where interpretation of terms and diverse domestic rules did not apply. Avoidance furthermore comprised concepts of rescission and termination. From the above it was argued that South Africa needs to develop new terms for termination of a contract and create new laws along the lines of the CISG.