Be Bop A Lula Manufacturing & Printing CC v Kingtex Marketing (Pty) Ltd (042/07) [2007] ZASCA 162; [2007] SCA 162 (RSA); [2008] 1 All SA 529 (SCA); 2008 (3) SA 327 (SCA) (29 November 2007)

Be Bop A Lula Manufacturing & Printing CC v Kingtex Marketing (Pty) Ltd (042/07) [2007] ZASCA 162; [2007] SCA 162 (RSA); [2008] 1 All SA 529 (SCA); 2008 (3) SA 327 (SCA) (29 November 2007)

The Supreme Court of Appeal held that the cheque, accompanied by the Credit Request and Final Reconciliation, objectively constituted an offer of compromise. The respondent's deposit and retention of the proceeds, even in the attorneys' trust account and subsequent appropriation for fees, amounted to acceptance of the offer. The respondent could not impose conditions or retain the money without accepting the compromise. The appellant's attempt to stop payment after purported rejection did not negate the objective intention to compromise. The appeal was upheld, and the respondent's claim was dismissed as the matter had been compromised.

Citation
[2007] SCA 162 RSA
Parties
Appellant: Be Bop A Lula Manufacturing & Printing CC; Respondent: Kingtex Marketing (Pty) Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
29 November 2007
Case Number
042/07
Procedural Posture
Civil Appeal / Appeal From Full Court of Cape High Court
Outcome
Appeal upheld; respondent's claim dismissed as compromised.
Judges
Harms, Navsa, Lewis, Hurt, Malan
Legal Topics
Compromise and Settlement, Offer and Acceptance, Payment in Full and Final Settlement, Contractual Consensus
Commercial and Corporate Civil Procedure Compromise and Settlement Offer and Acceptance Payment in Full and Final Settlement Contractual Consensus

Case Brief

Summary, issues, holding and outcome

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Parties

Be Bop A Lula Manufacturing & Printing CC

Appellant

Kingtex Marketing (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Full Court of Cape High Court

Legal Issues

  1. 1 Whether the deposit and payment of a cheque marked 'full and final settlement of account' constituted an offer of compromise.
  2. 2 Whether the respondent's deposit and retention of the cheque's proceeds amounted to acceptance of the offer of compromise.
  3. 3 Whether the appellant's attempt to stop payment negated the intention to compromise.

Ratio Decidendi

The Supreme Court of Appeal held that the cheque, accompanied by the Credit Request and Final Reconciliation, objectively constituted an offer of compromise. The respondent's deposit and retention of the proceeds, even in the attorneys' trust account and subsequent appropriation for fees, amounted to acceptance of the offer. The respondent could not impose conditions or retain the money without accepting the compromise. The appellant's attempt to stop payment after purported rejection did not negate the objective intention to compromise. The appeal was upheld, and the respondent's claim was dismissed as the matter had been compromised.

Court Disposition

Appeal upheld; respondent's claim dismissed as compromised.

Orders

  • The appeal is upheld with costs.
  • The order of the court a quo is set aside and replaced by an order dismissing the claim with costs.