Chretien and Another v Bell (52/09) [2009] ZASCA 147; [2010] 2 All SA 428 (SCA) ; 2011 (1) SA 54 (SCA) (26 November 2009)

Chretien and Another v Bell (52/09) [2009] ZASCA 147; [2010] 2 All SA 428 (SCA) ; 2011 (1) SA 54 (SCA) (26 November 2009)

The Supreme Court of Appeal held that the written agreement between the parties did not comply with section 2(1) of the Alienation of Land Act 68 of 1981 because it failed to stipulate the time for payment of the purchase price, a material term. The agreement expressly required the parties to agree in writing on the payment details by a specified date, but no such agreement was reached. The absence of this term rendered the contract void ab initio and unenforceable. The respondent's argument that the reference to payment details related only to the manner of payment was rejected, as the only outstanding issue was the timing of payment, which is a material term. The appeal was upheld, and...

Citation
[2009] ZASCA 147
Parties
Appellant: Luc Arthur France Chretien; Appellant: Carol Anne Chretien; Respondent: Linda Stewart Bell
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
26 November 2009
Case Number
52/09
Procedural Posture
Civil Appeal / Appeal From High Court, Durban
Outcome
Appeal upheld; application dismissed with costs, including costs of two counsel.
Judges
NAVSA, NUGENT, PONNAN, MAYA, TSHIQI
Legal Topics
Alienation of Land Act, Material Terms of Contract, Certainty of Contract, Unenforceability for Uncertainty
Land and Property Civil Procedure Alienation of Land Act Material Terms of Contract Certainty of Contract Unenforceability for Uncertainty

Case Brief

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Parties

Luc Arthur France Chretien

Appellant

Carol Anne Chretien

Appellant

Linda Stewart Bell

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court, Durban

Legal Issues

  1. 1 Whether the written purchase and sale agreement is void ab initio for non-compliance with section 2(1) of the Alienation of Land Act 68 of 1981.
  2. 2 Whether the absence of a stipulated time for payment renders the contract unenforceable.
  3. 3 Whether the parties' intention regarding payment details satisfies statutory requirements.

Ratio Decidendi

The Supreme Court of Appeal held that the written agreement between the parties did not comply with section 2(1) of the Alienation of Land Act 68 of 1981 because it failed to stipulate the time for payment of the purchase price, a material term. The agreement expressly required the parties to agree in writing on the payment details by a specified date, but no such agreement was reached. The absence of this term rendered the contract void ab initio and unenforceable. The respondent's argument that the reference to payment details related only to the manner of payment was rejected, as the only outstanding issue was the timing of payment, which is a material term. The appeal was upheld, and...

Court Disposition

Appeal upheld; application dismissed with costs, including costs of two counsel.

Orders

  • The appeal is upheld with costs.
  • The order of the court below is set aside and substituted as follows: The application is dismissed with costs, including the costs of two counsel.