Desert General Trading (Pty) Ltd and Another v Idada 324 (Pty) Ltd (44098/19) [2020] ZAGPPHC 701 (25 November 2020)

Desert General Trading (Pty) Ltd and Another v Idada 324 (Pty) Ltd (44098/19) [2020] ZAGPPHC 701 (25 November 2020)

The court found that the plaintiff's services, as described in the contract and particulars of claim, were advisory in nature and did not amount to those of an estate agent as defined by the Estate Agents Act. The plaintiff did not 'hold itself out' as an estate agent, and the contract was between the plaintiff and the defendants, with the seller not being a party. Consequently, the failure to plead possession of a Fidelity Fund Certificate did not render the particulars of claim excipiable. The particulars of claim, together with the attached contract, disclosed a sufficient cause of action for breach of contract. The exception was therefore dismissed.

Citation
[2020] ZAGPPHC 701
Parties
Defendant: Desert General Trading (Pty) Ltd; Defendant: Desert Leasing and Properties (Pty) Ltd; Plaintiff: Idada 324 (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
25 November 2020
Case Number
44098/19
Procedural Posture
Exception Application / Exception to Particulars of Claim for Failure to Disclose Cause of Action
Outcome
Exception dismissed; particulars of claim disclose a cause of action.
Judges
FMM Snyman
Legal Topics
Exception to Pleadings, Breach of Contract, Estate Agents Act, Fidelity Fund Certificate, Cause of Action, Contractual Services
Civil Procedure Commercial and Corporate Exception to Pleadings Breach of Contract Estate Agents Act Fidelity Fund Certificate Cause of Action Contractual Services

Case Brief

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Parties

Desert General Trading (Pty) Ltd

Defendant

Desert Leasing and Properties (Pty) Ltd

Defendant

Idada 324 (Pty) Ltd

Plaintiff

Procedural Posture

Exception Application / Exception to Particulars of Claim for Failure to Disclose Cause of Action

Legal Issues

  1. 1 Whether the plaintiff's particulars of claim disclose a cause of action in light of the alleged failure to plead possession of a valid Fidelity Fund Certificate under the Estate Agents Act.
  2. 2 Whether the services rendered by the plaintiff fall within the ambit of the Estate Agents Act, requiring compliance with section 34A.
  3. 3 Whether the plaintiff 'held itself out' as an estate agent as defined by the Estate Agents Act.

Ratio Decidendi

The court found that the plaintiff's services, as described in the contract and particulars of claim, were advisory in nature and did not amount to those of an estate agent as defined by the Estate Agents Act. The plaintiff did not 'hold itself out' as an estate agent, and the contract was between the plaintiff and the defendants, with the seller not being a party. Consequently, the failure to plead possession of a Fidelity Fund Certificate did not render the particulars of claim excipiable. The particulars of claim, together with the attached contract, disclosed a sufficient cause of action for breach of contract. The exception was therefore dismissed.

Court Disposition

Exception dismissed; particulars of claim disclose a cause of action.

Orders

  • The exception is dismissed.
  • The excipients are ordered to file their plea within 20 days after receipt of this judgment.