Carriem v Fareed (10262/2005) [2008] ZAWCHC 48 (15 August 2008)

Carriem v Fareed (10262/2005) [2008] ZAWCHC 48 (15 August 2008)

The court found that the Plaintiff had proven on a balance of probabilities that the Deed of Sale was a genuine contract of sale and not a simulated transaction. The evidence established that both parties intended to enter into a binding agreement for the sale of the business, with the Defendant taking control and benefitting from its income. The written agreement, corroborated by independent witnesses, satisfied all formal requirements for a valid sale. The Defendant failed to discharge the burden of proving simulation and his version was found unreliable and contradictory. Accordingly, the Plaintiff was entitled to payment of the purchase price and interest as stipulated in the contract.

Citation
[2008] ZAWCHC 48
Parties
Plaintiff: Sara Carriem (previously Celeste Cockrell); Defendant: Ahmed Sedick Sheik Fareed
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
15 August 2008
Case Number
10262/2005
Procedural Posture
Civil Trial / Judgment After Trial
Outcome
Judgment for the Plaintiff.
Judges
Samela
Legal Topics
Contract of Sale, Simulated Transaction, Specific Performance, Instalment Sale, Validity of Contract
Commercial and Corporate Contract of Sale Simulated Transaction Specific Performance Instalment Sale Validity of Contract

Case Brief

Summary, issues, holding and outcome

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Parties

Sara Carriem (previously Celeste Cockrell)

Plaintiff

Ahmed Sedick Sheik Fareed

Defendant

Procedural Posture

Civil Trial / Judgment After Trial

Legal Issues

  1. 1 Whether the Deed of Sale signed by the parties was a genuine contract or a simulated transaction.
  2. 2 Whether the Plaintiff is entitled to payment of the purchase price under the contract.
  3. 3 Whether the essential elements of a valid sale were present.

Ratio Decidendi

The court found that the Plaintiff had proven on a balance of probabilities that the Deed of Sale was a genuine contract of sale and not a simulated transaction. The evidence established that both parties intended to enter into a binding agreement for the sale of the business, with the Defendant taking control and benefitting from its income. The written agreement, corroborated by independent witnesses, satisfied all formal requirements for a valid sale. The Defendant failed to discharge the burden of proving simulation and his version was found unreliable and contradictory. Accordingly, the Plaintiff was entitled to payment of the purchase price and interest as stipulated in the contract.

Court Disposition

Judgment for the Plaintiff.

Orders

  • The Defendant shall pay to the Plaintiff the sum of R950,000.00 (Nine Hundred and Fifty Thousand Rand) within 21 days.
  • The Defendant shall pay interest thereon at 10.5% per annum as from 29 August 2005 to date of final payment.