Mmakola and Another v Nelep (A331/2013) [2013] ZAGPPHC 476 (5 December 2013)

Mmakola and Another v Nelep (A331/2013) [2013] ZAGPPHC 476 (5 December 2013)

The court found that the appellants were contractually obliged to provide bank guarantees for the outstanding purchase price by 30 May 2008. The omission of the conveyancer's details in the contract was deemed a technicality, as the appellants were made aware of the conveyancer's identity through correspondence and could have obtained the necessary information from the seller. The delay in furnishing guarantees and signing transfer documents was attributable to the appellants, not the respondent. The magistrate erred in limiting the period for which interest was awarded. The respondent was entitled to interest on the outstanding amount for the full period of delay and to recover costs,...

Citation
[2013] ZAGPPHC 476
Parties
Appellant: Simon Malosi Mmakola; Appellant: Livia Mabolatsi Mmakola; Respondent: Nelep
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
5 December 2013
Case Number
A331/2013
Procedural Posture
Civil Appeal / Appeal Against Magistrate's Court Judgment; Only Cross Appeal Proceeded
Outcome
Counter appeal upheld with costs. Magistrate's order set aside and substituted.
Judges
D. Mogotsi, S. Poterill
Legal Topics
Sale of Land, Contractual Delay, Interest on Purchase Price, Costs Award
Commercial and Corporate Civil Procedure Sale of Land Contractual Delay Interest on Purchase Price Costs Award

Case Brief

Summary, issues, holding and outcome

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Parties

Simon Malosi Mmakola

Appellant

Livia Mabolatsi Mmakola

Appellant

Nelep

Respondent

Procedural Posture

Civil Appeal / Appeal Against Magistrate's Court Judgment; Only Cross Appeal Proceeded

Legal Issues

  1. 1 Whether the respondent is entitled to claim payment of R178,499.99 as interest at 15% per annum on R2,975,000.00 for the period 4 June 2008 to 23 October 2008.
  2. 2 Whether the magistrate erred in granting interest only for September to October 2008.
  3. 3 Whether the appellants should pay the respondent's costs of counsel.

Ratio Decidendi

The court found that the appellants were contractually obliged to provide bank guarantees for the outstanding purchase price by 30 May 2008. The omission of the conveyancer's details in the contract was deemed a technicality, as the appellants were made aware of the conveyancer's identity through correspondence and could have obtained the necessary information from the seller. The delay in furnishing guarantees and signing transfer documents was attributable to the appellants, not the respondent. The magistrate erred in limiting the period for which interest was awarded. The respondent was entitled to interest on the outstanding amount for the full period of delay and to recover costs,...

Court Disposition

Counter appeal upheld with costs. Magistrate's order set aside and substituted.

Orders

  • The counter appeal is upheld with costs.
  • The appellants are ordered to pay R178,499.99 as interest at 15% per annum on R2,975,000.00 for the period 4 June 2008 to 23 October 2008.