Emergency truck and Car Hire and Another v Standard Bank of South Africa Ltd. (521/82) [1986] ZASCA 58 (26 May 1986)

Emergency truck and Car Hire and Another v Standard Bank of South Africa Ltd. (521/82) [1986] ZASCA 58 (26 May 1986)

The court found that the evidence established a strong prima facie case that D K Chetty acted as agent for the second appellant and was duly authorised to make the purchases in question. The relationship between father and son, the established modus operandi of using cheques drawn on the first appellant's account for purchases on behalf of the second appellant, and the provision of signed blank cheques for such purchases supported the inference of agency and authority. The second appellant failed to deny the existence of such authority under oath, making it more probable than not that the necessary authority existed. The court rejected the appellants' attempt to distinguish the 31 January...

Citation
[1986] ZASCA 58
Parties
Appellant: Emergency Truck and Car Hire; Appellant: Jagathesan John Chetty; Respondent: The Standard Bank of South Africa Limited
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
26 May 1986
Case Number
521/82
Procedural Posture
Civil Appeal / Appeal From Trial Judgment
Outcome
Appeal dismissed with costs. Cross-appeal dismissed with costs, if any.
Judges
Joubert, Smalberger, Boshoff
Legal Topics
Agency, Authority of Agent, Payment by Cheque, Rectification of Contract, Delegation of Obligation
Commercial and Corporate Civil Procedure Agency Authority of Agent Payment by Cheque Rectification of Contract Delegation of Obligation

Case Brief

Summary, issues, holding and outcome

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Parties

Emergency Truck and Car Hire

Appellant

Jagathesan John Chetty

Appellant

The Standard Bank of South Africa Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From Trial Judgment

Legal Issues

  1. 1 Whether D K Chetty acted as agent for the second appellant in purchasing apples from C J Johnston.
  2. 2 Whether D K Chetty had authority to bind the second appellant in the disputed transactions.
  3. 3 Whether the payment by cheque drawn on the first appellant's account discharged the debt of the second appellant or D K Chetty personally.

Ratio Decidendi

The court found that the evidence established a strong prima facie case that D K Chetty acted as agent for the second appellant and was duly authorised to make the purchases in question. The relationship between father and son, the established modus operandi of using cheques drawn on the first appellant's account for purchases on behalf of the second appellant, and the provision of signed blank cheques for such purchases supported the inference of agency and authority. The second appellant failed to deny the existence of such authority under oath, making it more probable than not that the necessary authority existed. The court rejected the appellants' attempt to distinguish the 31 January...

Court Disposition

Appeal dismissed with costs. Cross-appeal dismissed with costs, if any.

Orders

  • The appeal is dismissed with costs.
  • The cross-appeal is dismissed with costs, if any.