Louw v Van Wyk and Others (22592/15) [2015] ZAGPPHC 602 (25 August 2015)

Louw v Van Wyk and Others (22592/15) [2015] ZAGPPHC 602 (25 August 2015)

The court held that the suspensive condition in the agreement of sale required the purchaser to obtain loan approval for the full amount of R3 800 000 by 27 February 2015. The approval for R3 600 000 did not satisfy this condition, and there was no agreement on how the shortfall would be paid. The attempts to pay the R200 000 deficit occurred after the deadline and could not revive the agreement, which had lapsed due to non-fulfillment of the suspensive condition. The principle from Kovals Investments was applied, confirming that substantial performance is not sufficient where a contract requires strict compliance with a suspensive condition unless the parties agree to amend the contract....

Citation
[2015] ZAGPPHC 602
Parties
Applicant: Burgert Frederik Louw; Respondent: Coenraad Christoffel van Wyk; Respondent: Brigitie Johanna Rosemarie van Wyk; Respondent: Registrars of Deeds
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
25 August 2015
Case Number
22592/15
Procedural Posture
Civil Application / Judgment
Outcome
Application dismissed with costs.
Judges
M F Legodi
Legal Topics
Suspensive Condition, Agreement of Sale, Specific Performance, Mortgage Financing
Land and Property Civil Procedure Suspensive Condition Agreement of Sale Specific Performance Mortgage Financing

Case Brief

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Parties

Burgert Frederik Louw

Applicant

Coenraad Christoffel van Wyk

Respondent

Brigitie Johanna Rosemarie van Wyk

Respondent

Registrars of Deeds

Respondent

Procedural Posture

Civil Application / Judgment

Legal Issues

  1. 1 Whether the suspensive condition in the agreement of sale was fulfilled by the applicant.
  2. 2 Whether the loan approval for a lesser amount than stipulated constituted fulfillment of the suspensive condition.
  3. 3 Whether subsequent attempts to pay the shortfall revived the agreement after the suspensive condition was not met.

Ratio Decidendi

The court held that the suspensive condition in the agreement of sale required the purchaser to obtain loan approval for the full amount of R3 800 000 by 27 February 2015. The approval for R3 600 000 did not satisfy this condition, and there was no agreement on how the shortfall would be paid. The attempts to pay the R200 000 deficit occurred after the deadline and could not revive the agreement, which had lapsed due to non-fulfillment of the suspensive condition. The principle from Kovals Investments was applied, confirming that substantial performance is not sufficient where a contract requires strict compliance with a suspensive condition unless the parties agree to amend the contract....

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.