COMMERCIAL LAW

Suing for Loss of Profit in Zimbabwe?

Where a party sustains loss as a result of a breach of contract, that party must, as far as money do, be placed in the same position as if the contract had been performed. A party in Zimbabwe is entitled to damages for loss of income or profit.

Damages for loss of profit in Zimbabwe are to be proved and cannot be presumed. They must be capable of some arithmetical calculation and cannot be assessed by the court from nothing. see Mining Industry Pension Fund v DAB Marketing (Pvt) Ltd 2012 (2) ZLR 132 (S).

It is important to note that loss of profit following breach of contract in Zimbabwe is an assessable loss which has to be proved by evidence and should not be confused with loss of future earning capacity, which calls for compensation for diminished earning capacity and is assessed as general damages. Santam Insurance Co Ltd v Paget 1981 ZLR 73 (A); 1981 (2) SA 621 (ZA).

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