Question: John, a self - employed graphic designer, entered into a service - level agreement with a government department to develop a new internal branding campaign.

John, a self-employed graphic designer, entered into a service-level agreement with a government
department to develop a new internal branding campaign. The contract stipulated that John would be paid
R200000 upon completion of the project.
During the course of the project, a dispute arose when the department unilaterally cancelled the agreement,
claiming budget cuts. John had already completed 75% of the work. He attempts to resolve the matter
informally, but the department refuses to make any payment.
At the same time, John is also facing a personal legal issue, a former client has posted false and
defamatory statements about his company on social media, resulting in significant reputational harm and
loss of contracts. John wants to take legal action in both matters, but is unsure which laws apply or what
rights and remedies are available to him.
1.2 Distinguish between real rights and personal rights and identify which of these John is exercising in
each situation.
(4 Marks)

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