Bredenkamp and Others v Standard Bank of SA Ltd (599/09) [2010] ZASCA 75; 2010 (4) SA 468 (SCA) ; 2010 (9) BCLR 892 (SCA) ; [2010] 4 All SA 113 (SCA) (27 May 2010)

Bredenkamp and Others v Standard Bank of SA Ltd (599/09) [2010] ZASCA 75; 2010 (4) SA 468 (SCA) ; 2010 (9) BCLR 892 (SCA) ; [2010] 4 All SA 113 (SCA) (27 May 2010)

The Supreme Court of Appeal held that the bank was entitled to terminate the banking relationship with the appellants on reasonable notice in terms of both express and implied contractual rights. The court rejected the argument that fairness is a free-standing requirement for the exercise of a contractual right, finding that unless the enforcement of a contract implicates an identified constitutional value or public policy consideration, there is no basis to refuse enforcement on grounds of fairness alone. The appellants conceded the validity of the contractual term and did not identify any constitutional value or public policy consideration that was unjustifiably affected by the bank's...

Citation
[2010] ZASCA 75
Parties
Appellant: John Arnold Bredenkamp; Appellant: Breco International Ltd; Appellant: Hamilton Place Trust; Appellant: International Cigarette Manufacturers (Pty) Ltd; Respondent: Standard Bank of SA Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
27 May 2010
Case Number
599/09
Procedural Posture
Civil Appeal / Appeal From South Gauteng High Court (johannesburg)
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Harms, Cloete, Ponnan, Cachalia, Saldulker
Legal Topics
Banker Client Relationship, Termination of Contract, Public Policy, Constitutional Values in Contract, Contractual Fairness
Commercial and Corporate Civil Procedure Banker Client Relationship Termination of Contract Public Policy Constitutional Values in Contract Contractual Fairness

Case Brief

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Parties

John Arnold Bredenkamp

Appellant

Breco International Ltd

Appellant

Hamilton Place Trust

Appellant

International Cigarette Manufacturers (Pty) Ltd

Appellant

Standard Bank of SA Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From South Gauteng High Court (johannesburg)

Legal Issues

  1. 1 Whether a bank may close a client's account in terms of an express or implied contractual right without offending constitutional values.
  2. 2 Whether fairness is a free-standing requirement for the exercise of a contractual right to terminate a banking relationship.
  3. 3 Whether the enforcement of a valid contractual term must be fair and reasonable even if no public policy consideration is implicated.

Ratio Decidendi

The Supreme Court of Appeal held that the bank was entitled to terminate the banking relationship with the appellants on reasonable notice in terms of both express and implied contractual rights. The court rejected the argument that fairness is a free-standing requirement for the exercise of a contractual right, finding that unless the enforcement of a contract implicates an identified constitutional value or public policy consideration, there is no basis to refuse enforcement on grounds of fairness alone. The appellants conceded the validity of the contractual term and did not identify any constitutional value or public policy consideration that was unjustifiably affected by the bank's...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two counsel.