Loggenberg and Others v Maree (286/17) [2018] ZASCA 24 (23 March 2018)

Loggenberg and Others v Maree (286/17) [2018] ZASCA 24 (23 March 2018)

The Supreme Court of Appeal held that the oral agreement between Mr Maree and Mr Loggenberg was not a contract of sale but rather a contract for the benefit of a third party (the Trust), whereby Maree undertook to purchase Weltevreden and transfer it to the Trust upon reimbursement of his costs and repayment of the loan. The agreement did not contemplate a sale to the Trust and thus did not require compliance with section 2(1) of the Alienation of Land Act. The pleadings, reasonably interpreted, disclosed a cause of action capable of enforcement. The court further found that the alleged vagueness of the oral agreement could potentially be resolved by evidence at trial and was not fatal at...

Citation
[2018] ZASCA 24
Parties
Appellant: Anton Loggenberg N O; Appellant: Charlotta Augusta Loggenberg N O; Appellant: Leon Loggenberg N O; Appellant: Loggenberg N O; Appellant: Anton Georg Vorster N O; Respondent: Nicolaas Petrus Maree
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
23 March 2018
Case Number
286/17
Procedural Posture
Civil Appeal / Appeal From Free State Division of the High Court, Bloemfontein
Outcome
Appeal upheld; High Court order set aside and substituted; case remitted for trial.
Judges
Seriti, Wallis, Swain, Pillay, Schippers
Legal Topics
Alienation of Land Act, Oral Agreements, Exception Procedure, Contract for Benefit of Third Party, Vagueness in Pleadings
Land and Property Civil Procedure Alienation of Land Act Oral Agreements Exception Procedure Contract for Benefit of Third Party Vagueness in Pleadings

Case Brief

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Parties

Anton Loggenberg N O

Appellant

Charlotta Augusta Loggenberg N O

Appellant

Leon Loggenberg N O

Appellant

Loggenberg N O

Appellant

Anton Georg Vorster N O

Appellant

Nicolaas Petrus Maree

Respondent

Procedural Posture

Civil Appeal / Appeal From Free State Division of the High Court, Bloemfontein

Legal Issues

  1. 1 Whether the oral agreement for the transfer of Weltevreden farm is void for non-compliance with section 2(1) of the Alienation of Land Act 68 of 1981.
  2. 2 Whether the oral agreement is void for vagueness and incapable of enforcement.
  3. 3 Whether the pleadings disclose a cause of action sufficient to survive exception.

Ratio Decidendi

The Supreme Court of Appeal held that the oral agreement between Mr Maree and Mr Loggenberg was not a contract of sale but rather a contract for the benefit of a third party (the Trust), whereby Maree undertook to purchase Weltevreden and transfer it to the Trust upon reimbursement of his costs and repayment of the loan. The agreement did not contemplate a sale to the Trust and thus did not require compliance with section 2(1) of the Alienation of Land Act. The pleadings, reasonably interpreted, disclosed a cause of action capable of enforcement. The court further found that the alleged vagueness of the oral agreement could potentially be resolved by evidence at trial and was not fatal at...

Court Disposition

Appeal upheld; High Court order set aside and substituted; case remitted for trial.

Orders

  • The appeal succeeds with costs.
  • The order of the High Court is set aside and substituted as follows: (a) The exception to the claim in prayers 1 and 2 is upheld and those prayers are struck out. (b) The exception to the claim in prayer 3 is dismissed. (c) The exception that the oral agreement is void for vagueness is dismissed. (d) Each party...