MCB Business Solution t/a Africa Business Solutions v Premier of the Northern Cape (359/2007) [2006] ZANCHC 30 (25 May 2006)

MCB Business Solution t/a Africa Business Solutions v Premier of the Northern Cape (359/2007) [2006] ZANCHC 30 (25 May 2006)

The court found that the respondent had validly cancelled the contract in terms of clause 7.2, which allowed for immediate cancellation if services were not rendered as contemplated. The evidence showed that the applicant was informed of the cancellation at a meeting on 6 March 2007, and the respondent's version prevailed regarding the existence of a dispute at the time of cancellation. The provisions of clause 21 regarding mediation and arbitration were irreconcilable with the right of unilateral cancellation under clause 7.2, and could not deprive the respondent of its contractual remedy. The application for declaratory relief and referral to mediation was therefore dismissed....

Citation
[2006] ZANCHC 30
Parties
Applicant: MCB Business Solution t/a Africa Business Solutions; Respondent: Premier of the Northern Cape
Court
Northern Cape High Court, Kimberley
Jurisdiction
South Africa
Judgment Date
25 May 2006
Case Number
359/2007
Procedural Posture
Urgent Application / Final Judgment on Urgent Application for Declaratory Relief and Referral to Mediation
Outcome
Application dismissed with costs, including wasted costs occasioned by the postponement on 13 April 2007.
Judges
C J Olivier
Legal Topics
Contractual Cancellation, Mediation Clause, Preferential Procurement Policy Framework Act, Interpretation of Contract, Costs Order
Commercial and Corporate Civil Procedure Contractual Cancellation Mediation Clause Preferential Procurement Policy Framework Act Interpretation of Contract Costs Order

Case Brief

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Parties

MCB Business Solution t/a Africa Business Solutions

Applicant

Premier of the Northern Cape

Respondent

Procedural Posture

Urgent Application / Final Judgment on Urgent Application for Declaratory Relief and Referral to Mediation

Legal Issues

  1. 1 Whether the contract between the applicant and respondent was validly cancelled by the respondent.
  2. 2 Whether the dispute between the parties was subject to mandatory mediation under clause 21 of the contract.
  3. 3 Whether the applicant was entitled to declaratory relief and referral to mediation after cancellation of the contract.

Ratio Decidendi

The court found that the respondent had validly cancelled the contract in terms of clause 7.2, which allowed for immediate cancellation if services were not rendered as contemplated. The evidence showed that the applicant was informed of the cancellation at a meeting on 6 March 2007, and the respondent's version prevailed regarding the existence of a dispute at the time of cancellation. The provisions of clause 21 regarding mediation and arbitration were irreconcilable with the right of unilateral cancellation under clause 7.2, and could not deprive the respondent of its contractual remedy. The application for declaratory relief and referral to mediation was therefore dismissed....

Court Disposition

Application dismissed with costs, including wasted costs occasioned by the postponement on 13 April 2007.

Orders

  • The application is dismissed.
  • The applicant is ordered to pay the costs of the application, including the wasted costs occasioned by the postponement on 13 April 2007.