Intech Instruments v Transnet Limited t/a South African Port Operations (1165/18) [2019] ZASCA 79; [2019] 3 All SA 357 (SCA) (31 May 2019)

Intech Instruments v Transnet Limited t/a South African Port Operations (1165/18) [2019] ZASCA 79; [2019] 3 All SA 357 (SCA) (31 May 2019)

The Supreme Court of Appeal held that the contract between Intech and Transnet was a performance specification contract, requiring Intech to achieve the stipulated outcomes, not merely perform specific listed items. Intech's failure to comply with statutory safety requirements justified Transnet's issuance of 'stop works' orders, which were lawful and compulsory under the Occupational Health and Safety Act and Construction Regulations. Intech's purported cancellation of the contract was itself unlawful and constituted repudiation, entitling Transnet to cancel the contract. Consequently, Intech's claims for retention monies, unpaid invoices, and loss of profit were unsustainable in law, as...

Citation
[2019] ZASCA 79
Parties
Appellant: Intech Instruments; Respondent: Transnet Limited t/a South African Port Operations
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
31 May 2019
Case Number
1165/18
Procedural Posture
Civil Appeal / Appeal From the Kwazulu Natal Division of the High Court, Durban
Outcome
Appeal dismissed with costs, including costs of two counsel. Condonation for late filing of the record granted, with costs to be paid by the appellant.
Judges
Majiedt, Dambuza, Mathopo, Makgoka, Plasket
Legal Topics
Construction Contracts, Repudiation, Occupational Health and Safety Act, Performance Specification, Quantum Meruit, Contract Cancellation
Commercial and Corporate Civil Procedure Construction Contracts Repudiation Occupational Health and Safety Act Performance Specification Quantum Meruit Contract Cancellation

Case Brief

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Parties

Intech Instruments

Appellant

Transnet Limited t/a South African Port Operations

Respondent

Procedural Posture

Civil Appeal / Appeal From the Kwazulu Natal Division of the High Court, Durban

Legal Issues

  1. 1 What was the precise nature and scope of the contract between Intech and Transnet?
  2. 2 Was the cancellation of the contract by either party lawful?
  3. 3 Are Intech's claims for retention monies, unpaid invoices, and loss of profit sustainable in law?

Ratio Decidendi

The Supreme Court of Appeal held that the contract between Intech and Transnet was a performance specification contract, requiring Intech to achieve the stipulated outcomes, not merely perform specific listed items. Intech's failure to comply with statutory safety requirements justified Transnet's issuance of 'stop works' orders, which were lawful and compulsory under the Occupational Health and Safety Act and Construction Regulations. Intech's purported cancellation of the contract was itself unlawful and constituted repudiation, entitling Transnet to cancel the contract. Consequently, Intech's claims for retention monies, unpaid invoices, and loss of profit were unsustainable in law, as...

Court Disposition

Appeal dismissed with costs, including costs of two counsel. Condonation for late filing of the record granted, with costs to be paid by the appellant.

Orders

  • The appellant’s late filing of the record is condoned. The appellant is ordered to pay the costs of the application for condonation, including the costs of two counsel where so employed.
  • The appeal is dismissed with costs, including the costs of two counsel.