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South Africa Judgment

Northern Cape High Court, Kimberley

Abrinah 7804 (Pty) Ltd v Kapa Koni Investment CC (717/2016) [2017] ZANCHC 1 (13 January 2017)

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Source document

01

Holding and result

The court found that the applicant failed to demonstrate any reasonable prospects of success on appeal. The arguments advanced regarding the alleged nullity of the agreement and the nature of Clause 2 as a suspensive condition were fully addressed in the main judgment. The applicant's conduct in writing the letter and seeking cancellation indicated acceptance of the agreement's validity. The respondent complied with the requirements within the stipulated period. The court was satisfied that its interpretation of the agreement and the relevant correspondence was correct and that no other court would likely reach a different conclusion.

Court disposition

Application for leave to appeal dismissed with costs.

Orders

  • The application for leave to appeal is dismissed with costs.

02

Material facts

Parties

Abrinah 7804 (Pty) Ltd

Applicant Counsel: AG Van Tonder

Kapa Koni Investment CC

Respondent Counsel: WJ Coetzee SC

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal to Full Bench or Supreme Court of Appeal

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contended that the agreement between the parties was null and void as at 3 February 2016, arguing that the suspensive condition had not been fulfilled and could not be extended. The applicant further submitted that the court erred in interpreting the letter dated 15 February 2016 and that another court might construe it differently.
Respondent
The respondent argued that if the applicant truly regarded the agreement as void, there would have been no need to write the letter in question or to cancel the contract, as there would have been nothing to cancel. The respondent maintained that Clause 2 was not a suspensive condition and that the respondent had complied with the requirements within the afforded 14-day period.

05

Court’s reasoning

  1. 01

    Main judgment, para 17

    An agreement is not void if parties continue to act in terms of it and seek to enforce its provisions, including cancellation.

  2. 02

    Main judgment, para 17

    A suspensive condition must be clearly identified; not every clause constitutes such a condition.

  3. 03

    Superior Courts Act, s 17

    Leave to appeal may only be granted if there are reasonable prospects of success on appeal.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the applicant failed to demonstrate any reasonable prospects of success on appeal. The arguments advanced regarding the alleged nullity of the agreement and the nature of Clause 2 as a suspensive condition were fully addressed in the main judgment. The applicant's conduct in writing the letter and seeking cancellation indicated acceptance of the agreement's validity. The respondent complied with the requirements within the stipulated period. The court was satisfied that its interpretation of the agreement and the relevant correspondence was correct and that no other court would likely reach a different conclusion.

Obiter and limits

  • If the applicant truly believed the agreement was void, there would have been no need for cancellation or further correspondence.
  • Clause 2 does not constitute a suspensive condition as argued by the applicant.

Court disposition

Application for leave to appeal dismissed with costs.

  • The application for leave to appeal is dismissed with costs.

Source and reliance status

Northern Cape High Court, Kimberley

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Judgment text

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Source document

Northern Cape High Court, Kimberley

Judgment

[2017] ZANCHC 1

IN

THE HIGH COURT OF SOUTH AFRICA

NORTHERN CAPE DIVISION, KIMBERLEY

Case No: 717/2016

Heard on: 08/12/2016

Delivered on: 13/01/2017

In the matter between:

ABRI NAH 7804 (PTY)

LTD

APPLICANT

And

KAPA

KONI INVESTMENT

CC

RESPONDENT

JUDGMENT:

APPLICATION FOR LEAVE TO APPEAL

MAMOSEBO J

[1] This is an application for leave to appeal, to the Full Bench of the Northern Cape Division, alternatively the Supreme Court of Appeal, against the whole of my judgment delivered on 14 October 2016, with the following order:

1.1 That the agreement between the Kapa Koni Investment s CC and Abrinah 7804 (Pty) Ltd concluded on 04 August 20 15 is still valid;

1.2 That the purported cancellation of the agreement by Abrinah 7804 (Pty) Ltd on 07 March 2016 was wrongful; and

1.3 That Abrinah 7804 (Pty) Ltd pays the costs of this application on the party and party scale.

[2] The applicant's main argument revolved around the submission that I erred in not find ing that the agreement between the patties was null and void as at 03 February 2016 and that it was not possible to extend the period within which the suspensive condition had not been fulfilled. Adv Van Tonder, appearing for the applicant, sought to convince me further that I erred in the interpretation of the contents of the letter dated 15 February 2016 and therefore that another Court may construe it differently.

[3] Para 17 of the main judgment disposes of the submissions by Adv Van Tonder fully. Counsel has not dealt with the purpose of this l etter both in his oral and written submissions. A point correctly taken by Adv Coetzee SC is that if the applicant regarded the agreement to be void there would not have been any need to write the letter in question and neither would the necessity to cancel the contract have arisen because there would have been nothing to cancel. Counsel expounded, correctly so in my view, that in any event Clause 2 is not a suspensive condition as submitted by Adv Van Tonder.

[4] The applicant had afforded Kapa Koni Investment CC 14 days to comply with Clause 2 of the agreement which it did. Having heard counsel 's submissions on both sides, it remains my view that the applicant has no reasonable prospects of success on appeal. See s 17 of the Superior Courts act, 10 of 2013.

[5] In the result the following order is made:

The application for leave to appeal is dismissed with costs.

_______

MAMOSEBO

J

NORTHERN

CAPE HIGH COURT

For the applicant: Adv AG Van Tonder

Instructed by:

Van de Wall Inc

For the respondent: Ad v WJ Coetzee SC

Instructed by:

Towell Groenewaldt Attorneys

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Superior Courts Act, 10 of 2013

Legislation

Legislation referenced in the available case record.

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