ABSTRACT

The basic purpose of damages for beach is to compensate the innocent party for the loss suffered, not to punish the wrongdoer.144 The general rule is that:

This does not mean that all loss suffered by an innocent party will necessarily have to be paid for. There are two matters that have to be considered before the amount of damages is finalised:

Damages will only be recoverable if they may reasonably be considered as either: • arising naturally according to the normal course of things from the breach;

or • within the contemplation of the parties when they made the contract as the

probable result of the breach.