Bank of Lisbon International Ltd. v Venter and Another (371/1988) [1989] ZASCA 159; [1990] 2 All SA 14 (A) (28 November 1989)

Bank of Lisbon International Ltd. v Venter and Another (371/1988) [1989] ZASCA 159; [1990] 2 All SA 14 (A) (28 November 1989)

The Supreme Court of Appeal held that the appellant's claim was based on the enforcement of a penalty clause in the instalment sale agreement, which provided for retention of payments and liquidated damages upon breach. The court found that section 2(1) of the Conventional Penalties Act did not apply to the claim,...

Source-derived case information.

Citation
[1989] ZASCA 159
Parties
Appellant: Bank of Lisbon International Ltd; Respondent: Barend Johannes Venter; Respondent: Veronica Dawn Venter
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Case Number
371/1988
Procedural Posture
Civil Appeal / Appeal From Trial Court Judgment
Outcome
Appeal upheld. Judgment granted for the appellant for the amount claimed, with interest and costs.
Judges
Joubert, Botha, Hefer, Milne, Kumleben
Legal Topics
Instalment Sale Agreement, Liquidated Damages, Penalty Clauses, Burden of Proof, Attorney and Client Costs
Commercial and Corporate Civil Procedure Instalment Sale Agreement Liquidated Damages Penalty Clauses Burden of Proof Attorney and Client Costs

Source-derived case record

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Parties

Bank of Lisbon International Ltd

Appellant

Barend Johannes Venter

Respondent

Veronica Dawn Venter

Respondent

Procedural Posture

Civil Appeal / Appeal From Trial Court Judgment

  1. 1 Whether the penalty clause in the instalment sale agreement is enforceable under the Conventional Penalties Act 15 of 1962.
  2. 2 Whether the trial court erred in dismissing the appellant's claim based on the interpretation and application of section 2(1) of the Conventional Penalties Act.
  3. 3 Whether the evidentiary certificate issued under clause 6.6 of the contract constitutes sufficient proof of indebtedness.

Ratio Decidendi

The Supreme Court of Appeal held that the appellant's claim was based on the enforcement of a penalty clause in the instalment sale agreement, which provided for retention of payments and liquidated damages upon breach. The court found that section 2(1) of the Conventional Penalties Act did not apply to the claim, as the damages sought were liquidated and fell within the scope of the penalty clause, not additional damages. The trial court erred in interpreting the claim as one for damages outside the penalty clause and in dismissing the claim on that basis. The evidentiary certificate issued under clause 6.6 of the contract constituted sufficient proof of indebtedness, and the respondents...

Court Disposition

Appeal upheld. Judgment granted for the appellant for the amount claimed, with interest and costs.

Orders

  • The appeal is upheld with costs, including the costs of the application for leave to appeal.
  • Paragraph 2 of the trial court's order is set aside and replaced with judgment for the plaintiff against the defendants jointly and severally for payment of R8,643.37.