B Braun Medical (Pty) Ltd v Ambasaam CC

The parties concluded a contract of carriage on 8 December 2008. In March 2011, B Braun Medical (Pty) Ltd (Braun) sent two letters of demand to Ambasaam CC (Ambasaam) alleging breaches of the contract and demanding performance, stating that Braun would cancel and claim damages if Ambasaam failed to comply. Ambasaam responded that these demands objectively conveyed an intention not to honour the agreement and constituted repudiation, which it purported to accept. Braun denied repudiation, contending that it merely demanded performance in accordance with the contract. Ambasaam instituted action for damages based on repudiation, and the trial court found in its favour.

The appeal was upheld with costs. Paragraphs 1 and 3 of the trial court’s order were set aside and replaced with an order dismissing Ambasaam’s claim with costs.

The case reaffirms the objective test for repudiation in South African contract law, emphasizing perception rather than subjective intention. It clarifies that a demand for performance, even if mistaken or unjustified, does not ordinarily constitute repudiation. The judgment also reinforces established principles on contractual interpretation and cautions against the overuse of extrinsic evidence.