Du Toit and Another v Minister of Land Affairs/Rural Development and Land Reform and Others (LCC60/2010, LCC61/2010, LCC62/2010) [2011] ZALCC 21 (16 June 2011)

Du Toit and Another v Minister of Land Affairs/Rural Development and Land Reform and Others (LCC60/2010, LCC61/2010, LCC62/2010) [2011] ZALCC 21 (16 June 2011)

The court found that the agreement of sale was entered into and binding on 31 March 2009, as confirmed by the parties' settlement and subsequent court order. The re-signing in January 2011 merely formalised the existing agreement and did not create a new contract. The agreement stipulated that 50% of the purchase price was due within 30 days of signature, making payment due on 1 May 2009. The respondents only paid the deposit on 3 February 2011, resulting in a delay of approximately 20 months. The remaining balance was paid after registration. The court held that the respondents were in mora ex re for the period of delay and liable for interest at the legal rate of 15.5%. Costs were...

Citation
[2011] ZALCC 21
Parties
Applicant: Daniel Johannes Du Toit; Applicant: Elizabeth Christina Magritha Du Toit; Applicant: Matthews Gerhardus Beukes; Applicant: Dareen Beukes; Applicant: Nicholaas Johannes Gerhardus Van Coller; Respondent: Minister of Land Affairs/Rural Development and Land Reform; Respondent: Director General of the Department of Rural Development and Land Reform; Respondent: Chief Land Claims Commissioner; Respondent: Regional Land Claims Commissioner Limpopo; Respondent: Bela-Beal Communal Property Association
Court
Land Claims Court
Jurisdiction
South Africa
Judgment Date
16 June 2011
Case Number
LCC60/2010, LCC61/2010, LCC62/2010
Procedural Posture
Civil Application / Damages and Costs Following Partial Settlement of Prayers in Application to Enforce Sale Agreement
Outcome
Application granted in part; damages by way of interest and costs awarded against first to fourth respondents.
Judges
J.M. Mpshe
Legal Topics
Sale of Land, Specific Performance, Damages for Mora, Interest on Purchase Price, Costs Award

Case Brief

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Parties

Daniel Johannes Du Toit

Applicant

Elizabeth Christina Magritha Du Toit

Applicant

Matthews Gerhardus Beukes

Applicant

Dareen Beukes

Applicant

Nicholaas Johannes Gerhardus Van Coller

Applicant

Minister of Land Affairs/Rural Development and Land Reform

Respondent

Director General of the Department of Rural Development and Land Reform

Respondent

Chief Land Claims Commissioner

Respondent

Regional Land Claims Commissioner Limpopo

Respondent

Bela-Beal Communal Property Association

Respondent

Procedural Posture

Civil Application / Damages and Costs Following Partial Settlement of Prayers in Application to Enforce Sale Agreement

  1. 1 Whether the agreement of sale entered into on 31 March 2009 is binding and enforceable.
  2. 2 Whether the respondents are liable for damages by way of interest due to late payment (mora).
  3. 3 Whether the applicants are entitled to costs on a party and party scale.

Ratio Decidendi

The court found that the agreement of sale was entered into and binding on 31 March 2009, as confirmed by the parties' settlement and subsequent court order. The re-signing in January 2011 merely formalised the existing agreement and did not create a new contract. The agreement stipulated that 50% of the purchase price was due within 30 days of signature, making payment due on 1 May 2009. The respondents only paid the deposit on 3 February 2011, resulting in a delay of approximately 20 months. The remaining balance was paid after registration. The court held that the respondents were in mora ex re for the period of delay and liable for interest at the legal rate of 15.5%. Costs were...

Court Disposition

Application granted in part; damages by way of interest and costs awarded against first to fourth respondents.

Orders

  • Fourth respondent is to pay applicants in LCC61/2010 and LCC62/2010 damages by way of interest at the legal rate of 15.5%.
  • First to fourth respondents are to pay the costs of this application on a party and party scale jointly and severally.