Huntleigh Hejsani Duncan Manufacturing (Pty) Ltd v Hejsani Wagner Investments CC (17588/04) [2005] ZAGPHC 25 (4 March 2005)

Huntleigh Hejsani Duncan Manufacturing (Pty) Ltd v Hejsani Wagner Investments CC (17588/04) [2005] ZAGPHC 25 (4 March 2005)

The court found that the applicant validly exercised the option to purchase as provided in the lease agreement, which contained all essential terms required by law. The property was sufficiently described, and the contract complied with the Alienation of Land Act. The respondent's contention that the option was void for vagueness was rejected, as the contract was clear and the parties were ad idem regarding the property and price. The court held that, in terms of the VAT Act, the obligation to pay VAT rests on the seller unless expressly stated otherwise, and where VAT is not separately stated, it is deemed included in the purchase price. There was no evidence of a common intention or...

Citation
[2005] ZAGPHC 25
Parties
Applicant: Huntleigh Hejsani Duncan Manufacturing (Pty) Ltd; Respondent: Hejsani Wagner Investments CC
Court
High Courts - Gauteng
Jurisdiction
South Africa
Judgment Date
4 March 2005
Case Number
17588/04
Procedural Posture
Urgent Application / Application to Compel Transfer of Immovable Property
Outcome
Application granted. The respondent is ordered to effect transfer of the property to the applicant against payment of R4 million. Costs awarded to the applicant.
Judges
N Ranchod
Legal Topics
Alienation of Land Act, Option to Purchase, Contractual Consensus, Vat Liability, Rectification, Formalities of Sale
Land and Property Commercial and Corporate Alienation of Land Act Option to Purchase Contractual Consensus Vat Liability Rectification Formalities of Sale

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Parties

Huntleigh Hejsani Duncan Manufacturing (Pty) Ltd

Applicant

Hejsani Wagner Investments CC

Respondent

Procedural Posture

Urgent Application / Application to Compel Transfer of Immovable Property

Legal Issues

  1. 1 Whether the applicant validly exercised the option to purchase the property as provided in the lease agreement.
  2. 2 Whether the option to purchase was void for vagueness and thus unenforceable.
  3. 3 Whether the purchase price of R4 million included or excluded VAT.

Ratio Decidendi

The court found that the applicant validly exercised the option to purchase as provided in the lease agreement, which contained all essential terms required by law. The property was sufficiently described, and the contract complied with the Alienation of Land Act. The respondent's contention that the option was void for vagueness was rejected, as the contract was clear and the parties were ad idem regarding the property and price. The court held that, in terms of the VAT Act, the obligation to pay VAT rests on the seller unless expressly stated otherwise, and where VAT is not separately stated, it is deemed included in the purchase price. There was no evidence of a common intention or...

Court Disposition

Application granted. The respondent is ordered to effect transfer of the property to the applicant against payment of R4 million. Costs awarded to the applicant.

Orders

  • The respondent is ordered and directed to do all such things and sign all necessary documents to effect transfer of Portion 302 of the farm Witfontein No 301 Registration Division JR, measuring 2,1821 hectares and situate at 120 Willem Kruywagen Avenue, Klerksoord, Pretoria, held under deed of transfer no T21819/90,...
  • If the respondent fails to comply within fifteen days, the sheriff is authorised and directed to effect transfer of the property from the respondent to the applicant against payment of R4 million.