GPC Developments CC and Others v Uys (A71/2017) [2017] ZAWCHC 80; [2017] 4 All SA 14 (WCC) (15 August 2017)

GPC Developments CC and Others v Uys (A71/2017) [2017] ZAWCHC 80; [2017] 4 All SA 14 (WCC) (15 August 2017)

The court held that the sellers did not lawfully cancel the contract because they failed to comply with the cancellation procedure set out in clause 3 of the addendum, which required a tender to repay R968,000 to the purchaser upon cancellation. The sellers elected to rely on the addendum's lex commissoria, as evidenced by their correspondence and demands, and were therefore bound by its terms. Their failure to tender repayment rendered the cancellation a nullity, and as a result, the purchaser's occupation of the property remained lawful. The appeal was dismissed, confirming the decision of the court a quo.

Citation
[2017] ZAWCHC 80
Parties
Appellant: GPC Developments CC; Appellant: Gerhardt Petra Janse van Veuren; Appellant: Corry Maria Janse van Veuren; Respondent: Erens Johannes Uys; Respondent: City of Cape Town
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
15 August 2017
Case Number
A71/2017
Procedural Posture
Civil Appeal / Appeal From Dismissal of Eviction Application
Outcome
Appeal dismissed with costs.
Judges
Gamble, Dlodlo, Fortuin
Legal Topics
Eviction, Lex Commissoria, Contract Cancellation, Forfeiture of Payments, Breach of Contract
Land and Property Civil Procedure Eviction Lex Commissoria Contract Cancellation Forfeiture of Payments Breach of Contract

Case Brief

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Parties

GPC Developments CC

Appellant

Gerhardt Petra Janse van Veuren

Appellant

Corry Maria Janse van Veuren

Appellant

Erens Johannes Uys

Respondent

City of Cape Town

Respondent

Procedural Posture

Civil Appeal / Appeal From Dismissal of Eviction Application

Legal Issues

  1. 1 Whether the sellers lawfully cancelled the contract for sale of members' interest in GPC Developments CC.
  2. 2 Whether the purchaser's occupation of the property became unlawful following the purported cancellation.
  3. 3 Whether the sellers complied with the contractual procedure for cancellation as set out in the deed of sale and addendum.

Ratio Decidendi

The court held that the sellers did not lawfully cancel the contract because they failed to comply with the cancellation procedure set out in clause 3 of the addendum, which required a tender to repay R968,000 to the purchaser upon cancellation. The sellers elected to rely on the addendum's lex commissoria, as evidenced by their correspondence and demands, and were therefore bound by its terms. Their failure to tender repayment rendered the cancellation a nullity, and as a result, the purchaser's occupation of the property remained lawful. The appeal was dismissed, confirming the decision of the court a quo.

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.
  • The purchaser retains lawful occupation of the property until proper cancellation is effected in accordance with the contract.