Humphries and Another v Import Export 2020 (Pty)Ltd (92006/2016) [2016] ZAGPPHC 786 (26 August 2016)

Humphries and Another v Import Export 2020 (Pty)Ltd (92006/2016) [2016] ZAGPPHC 786 (26 August 2016)

The court found that the applicants had complied with their contractual obligations by paying the purchase price and transfer costs. The respondent failed to transfer the property within a reasonable time, and the applicants' letter of demand placed the respondent in mora by requiring performance within seven days. The respondent did not comply, nor did it provide any justification for the delay. The applicants were entitled to cancel the contract and claim repayment of all amounts paid, together with interest and costs. The cancellation was lawful and the relief sought was granted.

Citation
[2016] ZAGPPHC 786
Parties
Applicant: Lourens Johannes Humphries; Applicant: Zacharia Gertruida Magdalena Humphries; Respondent: Import Export 2020 (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
26 August 2016
Case Number
92006/2016
Procedural Posture
Civil Application / Application for Confirmation of Cancellation and Repayment
Outcome
Application granted; cancellation confirmed; repayment and interest ordered.
Judges
HF Jacobs
Legal Topics
Sale of Immovable Property, Contract Cancellation, Mora Ex Re, Prescribed Rate of Interest, Specific Performance
Land and Property Civil Procedure Sale of Immovable Property Contract Cancellation Mora Ex Re Prescribed Rate of Interest Specific Performance

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Parties

Lourens Johannes Humphries

Applicant

Zacharia Gertruida Magdalena Humphries

Applicant

Import Export 2020 (Pty) Ltd

Respondent

Procedural Posture

Civil Application / Application for Confirmation of Cancellation and Repayment

Legal Issues

  1. 1 Whether the applicants lawfully cancelled the written agreement of sale due to the respondent's breach.
  2. 2 Whether the respondent was placed in mora by the applicants' demand for performance.
  3. 3 Whether the applicants are entitled to repayment of the purchase price and transfer costs plus interest.

Ratio Decidendi

The court found that the applicants had complied with their contractual obligations by paying the purchase price and transfer costs. The respondent failed to transfer the property within a reasonable time, and the applicants' letter of demand placed the respondent in mora by requiring performance within seven days. The respondent did not comply, nor did it provide any justification for the delay. The applicants were entitled to cancel the contract and claim repayment of all amounts paid, together with interest and costs. The cancellation was lawful and the relief sought was granted.

Court Disposition

Application granted; cancellation confirmed; repayment and interest ordered.

Orders

  • The cancellation of the written agreement of purchase concluded between the applicants and the respondent dated 18 November 2013 is confirmed.
  • The respondent is ordered to pay to the applicants the sum of R750 000.00.