Pre-Contract Negotiations

When negotiating a contract, it is important to distinguish between statements that are 'pre-contractual' and made as part of negotiations, and those that are intended to be contractual terms. There are significant consequences for parties who make false or misleading pre-contractual statements, however the remedies that are available to the aggrieved party are not as strong as those applicable for a breach of contract.

If a party has been convinced to enter a contract by a pre-contractual statement made by the other party, and that statement turns out to be inaccurate, they may be entitled to rescind the contract and to claim damages for any loss suffered.

In the case of a term of a contract breach, remedies include rescission and damages but also extend to specific implement, interdict, and 'self-help' remedies such as performance retention and suspension.