Auto Vita v Monumental Art Co (340/89) [1991] ZASCA 28 (26 March 1991)

Auto Vita v Monumental Art Co (340/89) [1991] ZASCA 28 (26 March 1991)

The court found that the oral agreement between the parties required the appellant to pay the respondent the sale price of the Mercedes upon receipt from the purchaser. The evidence established that the full price was agreed and that the post-dated cheque for R17,500 was issued to discharge the remaining obligation. The appellant's explanations for the extra R500 and the stoppage of payment were rejected as implausible and unsupported by the facts. The court accepted the respondent's version and the credibility findings of the trial judge, holding that the appellant was not entitled to stop payment on the cheque and was contractually bound to pay the respondent. The appeal was dismissed...

Citation
[1991] ZASCA 28
Parties
Appellant: Auto Vita; Respondent: Monumental Art Co
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
26 March 1991
Case Number
340/89
Procedural Posture
Civil Appeal / Appeal From Trial Court Judgment
Outcome
Appeal dismissed with costs.
Judges
Hefer, Steyn, Goldstone
Legal Topics
Oral Contract, Payment Obligation, Cheque Stoppage, Contractual Intent
Commercial and Corporate Civil Procedure Oral Contract Payment Obligation Cheque Stoppage Contractual Intent

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 2 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Auto Vita

Appellant

Monumental Art Co

Respondent

Procedural Posture

Civil Appeal / Appeal From Trial Court Judgment

Legal Issues

  1. 1 Whether the appellant was contractually obliged to pay the respondent the sum of R17,500 based on the oral agreement and the cheque issued.
  2. 2 Whether the appellant was entitled to stop payment on the post-dated cheque.
  3. 3 Whether the respondent's claim was supported by a valid causa and whether a valid bill of exchange contract existed under the Bills of Exchange Act.

Ratio Decidendi

The court found that the oral agreement between the parties required the appellant to pay the respondent the sale price of the Mercedes upon receipt from the purchaser. The evidence established that the full price was agreed and that the post-dated cheque for R17,500 was issued to discharge the remaining obligation. The appellant's explanations for the extra R500 and the stoppage of payment were rejected as implausible and unsupported by the facts. The court accepted the respondent's version and the credibility findings of the trial judge, holding that the appellant was not entitled to stop payment on the cheque and was contractually bound to pay the respondent. The appeal was dismissed...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.