Bartie N.O. and Others v Fraaikem Pharmacy (Pty) Ltd (A236/2021) [2022] ZAWCHC 157 (17 August 2022)

Bartie N.O. and Others v Fraaikem Pharmacy (Pty) Ltd (A236/2021) [2022] ZAWCHC 157 (17 August 2022)

The court found that the Trust, by sending the renewal contract to Fraaikem and accepting rental payments, manifested an intention to be bound to a lease agreement with Fraaikem. The Trust's conduct constituted acceptance of Fraaikem's counter-offer and a waiver of its right to rely on late renewal and non-variation clauses. The lease agreement did not require signatures for validity, and the Trust did not withdraw its offer before the commencement date. The Trust's subsequent attempt to evict Fraaikem was inconsistent with its prior conduct and the enforceable contract that had arisen. The appeal was dismissed as the Trust was bound by the renewed lease agreement with Fraaikem.

Citation
[2022] ZAWCHC 157
Parties
Appellant: Edward Edwin Bartie N.O.; Appellant: Suzann Meyer N.O.; Appellant: Eduard David Ras N.O.; Respondent: Fraaikem Pharmacy (Pty) Ltd
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
17 August 2022
Case Number
A236/2021
Procedural Posture
Civil Appeal / Appeal From Dismissal of Eviction Application
Outcome
Appeal dismissed with costs.
Judges
Mangcu-Lockwood, J M Hlophe, M Samela
Legal Topics
Lease Renewal, Assignment of Contract, Waiver of Rights, Quasi Mutual Assent, Eviction, Contractual Consensus
Land and Property Commercial and Corporate Lease Renewal Assignment of Contract Waiver of Rights Quasi Mutual Assent Eviction Contractual Consensus

Case Brief

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Parties

Edward Edwin Bartie N.O.

Appellant

Suzann Meyer N.O.

Appellant

Eduard David Ras N.O.

Appellant

Fraaikem Pharmacy (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Dismissal of Eviction Application

Legal Issues

  1. 1 Whether the respondent validly exercised the option to renew the lease agreement despite not being an original party to the lease.
  2. 2 Whether the Trust waived its right to rely on late renewal and non-variation clauses through its conduct.
  3. 3 Whether a binding lease agreement existed between the Trust and Fraaikem from 1 June 2019.

Ratio Decidendi

The court found that the Trust, by sending the renewal contract to Fraaikem and accepting rental payments, manifested an intention to be bound to a lease agreement with Fraaikem. The Trust's conduct constituted acceptance of Fraaikem's counter-offer and a waiver of its right to rely on late renewal and non-variation clauses. The lease agreement did not require signatures for validity, and the Trust did not withdraw its offer before the commencement date. The Trust's subsequent attempt to evict Fraaikem was inconsistent with its prior conduct and the enforceable contract that had arisen. The appeal was dismissed as the Trust was bound by the renewed lease agreement with Fraaikem.

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.