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South Africa Judgment

Supreme Court of Appeal

Fivaz v ABSA Bank Bpk. (77/97) [1999] ZASCA 81 (10 November 1999)

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01

Holding and result

The court found that there was no unequivocal evidence that Volkskas, through Jacobs or otherwise, represented to the appellant that a new lease agreement had already been concluded. The appellant's own testimony did not support such a representation, and Jacobs denied making any such statement. The conduct relied upon by the appellant, namely the acceptance of payment and delivery of the property, was consistent with an interim arrangement and did not amount to a representation releasing the appellant from his suretyship. Accordingly, the appeal could not succeed.

Court disposition

The appeal is dismissed with costs.

Orders

  • The appeal is dismissed with costs.

02

Material facts

Parties

Philip John Fivaz

Appellant

ABSA Bank Beperk

Respondent

Amounts and remedies

  • Amount Paid by Mc Gregor: ZAR 5,000

03

Procedural history

  1. Posture

    Civil Appeal / Appeal

04

Questions and positions

Legal issues

Party arguments

Applicant
The appellant argued that Volkskas, either through explicit statements or conduct, represented that a new lease agreement had been concluded, which would release him from his suretyship. He relied on statements allegedly made by Jacobs and on the acceptance of payment and delivery of the property to McGregor as indicative of such a representation.
Respondent
The respondent denied that any representation was made that a new contract had already been concluded. Jacobs denied making such statements, and it was argued that the conduct relied upon by the appellant was consistent with an interim arrangement and did not amount to a representation releasing the appellant from his obligations.

05

Court’s reasoning

  1. 01

    General principles of South African contract law

    A party seeking to rely on a representation must prove that such representation was made unequivocally.

  2. 02

    General principles of South African law of suretyship

    Conduct must be clear and unambiguous to constitute a representation capable of releasing a surety.

06

Ratio, limits and disposition

Ratio decidendi

The court found that there was no unequivocal evidence that Volkskas, through Jacobs or otherwise, represented to the appellant that a new lease agreement had already been concluded. The appellant's own testimony did not support such a representation, and Jacobs denied making any such statement. The conduct relied upon by the appellant, namely the acceptance of payment and delivery of the property, was consistent with an interim arrangement and did not amount to a representation releasing the appellant from his suretyship. Accordingly, the appeal could not succeed.

Obiter and limits

  • Other arguments advanced on behalf of the appellant were without merit and need not be mentioned.
  • The acceptance of payment and delivery of the property was compatible with an interim arrangement, not with the conclusion of a new contract.

Court disposition

The appeal is dismissed with costs.

  • The appeal is dismissed with costs.

Source and reliance status

Supreme Court of Appeal

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Judgment text

The complete available source text.

Source document

Supreme Court of Appeal

Judgment

[1999] ZASCA 81

DIE HOOGSTE HOF VAN APPèL

VAN SUID AFRIKA

Saaknommer: 77/97

Insake die appèl van

Philip John Fivaz Appellant

en

ABSA Bank Beperk Respondent

Coram: VAN HEERDEN AHR, VIVIER, HOWIE, SCOTT ARR en MELUNSKY WndAR

Datum van Verhoor: 10 November 1998

Datum gelewer: 10 November 1998

UITSPRAAK

VAN HEERDEN AHR:

Afgesien van ander oorwegings kan die appèl nie slaag nie tensy bewys is dat Volkskas teenoor die appellant die voorstelling gemaak het dat ‘n nuwe huurkontrak ten opsigte van die voorhaker tussen McGregor en Volkskas aangegaan was.

Ek bespeur nie in die appellant se eie getuienis ‘n ondubbelsinnige aanduiding dat Jacobs so ‘n voorstelling gemaak het nie. Die appellant het bont gepraat, maar by ontleding van sy getuienis het Jacobs volgens hom slegs gesê dat indien ‘n nuwe kontrak gesluit sou word (d.w.s. in die toekoms) die appellant van sy borgstelling bevry sou wees.

Hoe dit ook al sy, Jacobs ontken dat hy te kenne gegee het dat ‘n nuwe kontrak reeds gesluit was, en aangesien hy geweet het dat dit nog nie gebeur het nie is dit heel onwaarskynlik dat hy so iets sou gesê het.

Die appellant se advokaat het ook gesteun op ‘n voorstelling wat Volkskas deur gedrag sou gemaak het. Die betrokke betoog stuit egter teen die nadere besonderhede wat tot die verweerskrif verstrek is. In antwoord op ‘n vraag hoe Volkskas die skyn, waarop die appellant gesteun het, verwek het, is naamlik gesê dat die appellant aldus meegedeel was. Daar was gevolglik geen sprake van gedrag — in teenstelling tot ‘n mededeling — waarop die appellant hom beroep het nie.

Die betoog het in elk geval weinig om die lyf. Die aanvaarding deur Volkskas van die bedrag van R5 000 wat McGregor betaal het en die lewering van die voorhaker aan hom, was immers goed vereenselwigbaar met een of ander tussentydse reëling wat met McGregor aangegaan was.

Ander argumente wat namens die appellant geopper is, is eweneens sonder pit en hoef nie vermeld te word nie.

Die appèl word met koste afgewys.

HJO VAN HEERDEN

ADJUNK HOOFREGTER

STEM SAAM:

VIVIER AR

HOWIE AR

SCOTT AR

MELUNSKY WndAR

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