Mofokeng v Franchising To Africa (Pty) Ltd t/a Gold Brands (69578/2015) [2018] ZAGPPHC 728 (19 March 2018)

Mofokeng v Franchising To Africa (Pty) Ltd t/a Gold Brands (69578/2015) [2018] ZAGPPHC 728 (19 March 2018)

The plaintiff failed to prove that the defendant fraudulently misrepresented the existence of a lease agreement. The franchise agreement expressly placed the obligation on the plaintiff to secure the lease or enter into a new lease and to pay monthly rentals regardless of the status of the lease. The plaintiff did not provide evidence of payment of rentals beyond November 2014, nor did he prove that any misrepresentation was material or induced him to enter the agreement. The plaintiff also could not tender return of the franchise assets, as they had been attached by the Sheriff. Accordingly, the claim for repayment of the purchase price failed. The defendant's counterclaims for...

Citation
[2018] ZAGPPHC 728
Parties
Plaintiff: Zacharia Sehloho Mofokeng; Defendant: Franchising To Africa (Pty) Ltd t/a Gold Brands
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
19 March 2018
Case Number
69578/2015
Procedural Posture
Civil Trial / Judgment After Trial
Outcome
Plaintiff's claim dismissed; defendant's counterclaims (claims 2, 3, and 4) granted; costs awarded to defendant on attorney and client scale; defendant's first counterclaim postponed sine die.
Judges
C J Van der Westhuizen
Legal Topics
Franchise Agreement, Misrepresentation, Acknowledgment of Debt, Contractual Liability, Damages, Costs Order
Commercial and Corporate Civil Procedure Franchise Agreement Misrepresentation Acknowledgment of Debt Contractual Liability Damages Costs Order

Case Brief

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Parties

Zacharia Sehloho Mofokeng

Plaintiff

Franchising To Africa (Pty) Ltd t/a Gold Brands

Defendant

Procedural Posture

Civil Trial / Judgment After Trial

Legal Issues

  1. 1 Whether the defendant fraudulently misrepresented the existence of a lease agreement to induce the plaintiff to enter into the franchise agreement.
  2. 2 Whether the plaintiff is entitled to repayment of the purchase price paid under the franchise agreement.
  3. 3 Whether the defendant is entitled to counterclaims for royalties, marketing fund contributions, and amounts acknowledged in debt.

Ratio Decidendi

The plaintiff failed to prove that the defendant fraudulently misrepresented the existence of a lease agreement. The franchise agreement expressly placed the obligation on the plaintiff to secure the lease or enter into a new lease and to pay monthly rentals regardless of the status of the lease. The plaintiff did not provide evidence of payment of rentals beyond November 2014, nor did he prove that any misrepresentation was material or induced him to enter the agreement. The plaintiff also could not tender return of the franchise assets, as they had been attached by the Sheriff. Accordingly, the claim for repayment of the purchase price failed. The defendant's counterclaims for...

Court Disposition

Plaintiff's claim dismissed; defendant's counterclaims (claims 2, 3, and 4) granted; costs awarded to defendant on attorney and client scale; defendant's first counterclaim postponed sine die.

Orders

  • Plaintiff's claim is dismissed.
  • Judgment is granted in favour of the defendant against the plaintiff for payment of R180,294.36.