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This matter dealt with a distributorship contract between Zambia Breweries and Betternow Family Limited. Betternow paid K100, 000 as a pre-condition to trading Zambia Breweries’ products – but after three (3) months of trading, Zambia Breweries terminated the supply of its products to Betternow Family Limited.

In this case, the contract provided that the contract can be terminated with one month’s notice. The contract was cancelled by Zambia Breweries and Betternow Family Limited sued for breach of contract. The trial court awarded damages equivalent to the unserved or remaining period of the contract.

The Supreme Court held that: Any damages awarded should have taken the notice period for determination of the agreement into account.