Combined Distribution Solutions CC v The Courier & Freight Group (Pty) Ltd t/a XPS

The appellant, a courier broker, alleged that the respondent courier company orally agreed to supply specialised software and a Zebra printer to install an in-house courier system at Elster Kent Metering’s premises. This system was required for the appellant to secure Elster Kent’s full courier business. Although preparatory steps were taken, the respondent later refused to supply the printer, citing cost concerns. At the same time, the appellant’s account with the respondent was seriously in arrears and its credit facilities were suspended in terms of a written agreement allowing the respondent to withdraw credit at its discretion. The appellant claimed that the respondent’s failure to supply the printer caused it to lose Elster Kent’s business and sued for damages representing lost profits.

The appeal was dismissed with costs.

The case confirms that proof of breach of contract alone is insufficient for a damages claim; a claimant must establish causation and actual loss. It illustrates the factual nature of the inquiry into contractual damages and affirms that lawful suspension of credit facilities can break the causal link between breach and alleged loss. The judgment also reiterates that appeals lie against orders, not reasons.