Insulation Thermal Acoustic Security Company (Pty) Ltd and Another v South African Post Office Limited (A23/2015) [2016] ZAGPPHC 914 (21 October 2016)
- Citation
- [2016] ZAGPPHC 914
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- Bam, Louw A. A., Ranchod
- Case number
- A23/2015
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- Bam, Louw A. A., Ranchod
- Case number
- A23/2015
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The appellate court found that the trial court failed to consider the alternative causes of action pleaded by the appellants, namely oral agreement and quasi-mutual assent, focusing only on the absence of a signed contract. The court held that contractual liability may be established by consensus or other means, and that the appellants presented an answerable case. The trial court's concession that it did not deal with quasi-mutual assent warranted remittal. Therefore, absolution from the instance was improperly granted, and the matter should be remitted for the respondent to present its case and for all causes of action to be properly determined.
Court disposition
Appeal upheld; order of absolution from the instance set aside; matter remitted to trial court.
Orders
- The appeal is upheld with costs.
- The order of the court a quo is set aside and replaced with an order refusing absolution from the instance.
- The case is remitted to the trial court for finalization.
02
Material facts
Parties
Insulation Thermal Acoustic Security Company (Pty) Ltd
Appellant Counsel: H C BotmaStritas (Pty) Ltd
Appellant Counsel: H C BotmaSouth African Post Office Limited
Respondent Counsel: H F Jacobs SC03
Procedural history
Posture
Civil Appeal / Appeal Against Absolution From the Instance at Close of Plaintiffs' Case
04
Questions and positions
Legal issues
- 01
Whether the court a quo was correct in granting absolution from the instance at the close of the appellants' case.
- 02
Whether the existence of a contract between the appellants and the respondent was sufficiently proved.
- 03
Whether alternative causes of action, including quasi-mutual assent and oral agreement, were properly considered.
Party arguments
- Applicant
- The appellants argued that the court a quo erred in granting absolution from the instance, as their case was based on the existence of a contract with the respondent, pleaded in the alternative as a written contract, oral agreement, and quasi-mutual assent. They contended that the trial court failed to consider the alternative causes of action and that contractual liability in South African law can be established by consensus or other means, not solely by a signed document.
- Respondent
- The respondent maintained that absolution from the instance was correctly granted because the appellants failed to prove the existence of a contract, specifically due to the absence of evidence that the CEO signed any agreement. The respondent argued that without such evidence, no contract could be found to exist between the parties.
05
Court’s reasoning
Legal principles
- 01
General principles of South African contract law
Contractual liability in South African law is primarily based on consensus ad idem, determined through offer and acceptance, but the existence of a contract may be proven by means other than a written or signed document.
- 02
Gafoor v Unie Versekeringsadviseurs (Edms) BPK 1961 (2) SA 335 at 340 D
On appeal, it is generally appropriate for the appellate tribunal, when allowing an appeal against an order granting absolution at the close of the plaintiff's case, to avoid expressing views that may prematurely influence the trial court's judgment on the facts when the defendant's case has not yet been presented.
06
Ratio, limits and disposition
Ratio decidendi
The appellate court found that the trial court failed to consider the alternative causes of action pleaded by the appellants, namely oral agreement and quasi-mutual assent, focusing only on the absence of a signed contract. The court held that contractual liability may be established by consensus or other means, and that the appellants presented an answerable case. The trial court's concession that it did not deal with quasi-mutual assent warranted remittal. Therefore, absolution from the instance was improperly granted, and the matter should be remitted for the respondent to present its case and for all causes of action to be properly determined.
Obiter and limits
- It is not for the appellate court to venture into the merits of the arguments between the parties at this stage.
- The caution expressed in Gafoor v Unie Versekeringsadviseurs is heeded to avoid curbing the trial court's judgment when the defendant's case has not been closed.
Court disposition
Appeal upheld; order of absolution from the instance set aside; matter remitted to trial court.
- The appeal is upheld with costs.
- The order of the court a quo is set aside and replaced with an order refusing absolution from the instance.
- The case is remitted to the trial court for finalization.
Source and reliance status
North Gauteng High Court, Pretoria
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
North Gauteng High Court, Pretoria
Judgment
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION, PRETORIA
CASE NO: A23/2015
DATE OF HEARING: 19/10/2016
DATE OF JUDGMENT: 21/10/2026
Reportable: No
Of interest to other judges: No
Revised.
In the matter between:
INSULATION
THERMAL ACOUSTIC SECURITY
COMPANY (PTY)
LTD FIRST
APPELLANT
STRITAS (PTY)
LTD SECOND
APPELLANT
SOUTH
AFRICAN POST OFFICE
LIMITED RESPONDENT
JUDGMENT
BAM AJ
[1] This Court has been called upon to answer the question whether the court a quo was correct in granting absolution from the instance upon application by the defendant at the close of the appellants' case.
[2] In this case, the court a quo had granted absolution from the instance on the grounds that the appellants had failed to prove the existence of a contract between themselves and the respondent. The judge specifically states that: "Now from the evidence it is clear that until a vel}' late stage there is no a/legation that there was ever a contract". This cannot be because the entire case of the appellants is based on what they allege is the existence of a contract. In fact the appellants pleaded three causes of action in the alternative, these being a written contract, an oral agreement and the application of quasi-mutual assent.
[3] In the court a quo' s judgment, there is no indication at all as to whether the two alternative causes of action were considered because reference is made only to the signature of the CEO. The court concluded that since there was no evidence that the CEO signed the contract, there can be none to speak of. It was on this basis that the court found for the respondent.
[4] It is so that the primary basis for contractual liability under South African law has always been and still remains consensus ad idem as determined through the rules relating to offer and acceptance. It is also an accepted principle of our law that the existence of a contract or an agreement can be proven in other ways beside the production of a written and/or signed document.
[5] In allowing the appeal to this court the judge a quo confirms that he did not quite deal with the issue of quasi-mutual assent and it is our view that he must be afforded the opportunity to do just that. A further reason, other than the court's concession already stated, is because upon perusal of the documents filed of record in this matter, we are of the view that the appellants have got an answerable case. It is essential that the respondent is given an opportunity to place its case or response before the court so that the causes of action, as put forward by the appellants can be addressed and a determination made in relation to them.
[6] It is not for this court to venture into the merits of the arguments between the parties and we heed the caution by Schreiner JA in Gafoor v Unie Versekeringsadviseurs (Edms) BPK 1961 (2) SA 335 at 340 D that:
"on appeal it is generally right for the Appellate Tribunal, when allowing an appeal against an order granting absolution at the close of the plaintiffs case, to avoid, as far as possible, the expression of views that may prematurely curb the free exercise by the trial court of its judgment on the facts when the defendant's case has been closed."
[9] In the premises, the following order is made:
(a) The appeal is upheld with costs.
(b) The order of the court a quo is hereby set aside and replaced with an order that absolution from the instance is refused.
(c) The case is remitted to the trial court for finalization.
______
ACTING
JUDGE OF THE HIGH COURT
I agree and it is so ordered
LOUW A. A. J
JUDGE
OF THE HIGH COURT
RANCHOD J
Counsel for the Appellants : H C BOTMA
Instructed by
: MICHAEL SALOMON ATTORNEYS
Counsel for Respondent : H F JACOBS SC
Instructed by
: MAHLANGU INC.
Date of Hearing
: 19 October 2016
Date of Judgment
: 21 October 2016
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