Molale v Elarda (NW17/2023) [2024] ZACONAF 9 (26 March 2024)
- Citation
- [2024] ZACONAF 9
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Consumer Affairs Court
- Panel
- KJP Kgomongwe, Tl Rakoka, ML Kortjas
- Case number
- NW17/2023
More details
- Court
- Consumer Affairs Court
- Panel
- KJP Kgomongwe, Tl Rakoka, ML Kortjas
- Case number
- NW17/2023
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the defendant materially breached the laybye agreement by failing to deliver the headboard purchased by the plaintiff. The plaintiff was entitled to cancel the agreement and claim a refund of the full purchase price paid. The defendant did not raise any valid defence and admitted liability through a settlement agreement. The court ordered cancellation of the agreement and directed the defendant to refund the plaintiff in two instalments, with provision for immediate payment of the full amount in case of default.
Court disposition
Judgment for the plaintiff; agreement cancelled and defendant ordered to refund the purchase price.
Orders
- The settlement agreement entered between the parties is made an order of court.
- The agreement between the parties is ordered cancelled.
- The defendant is ordered to refund the plaintiff R7000, payable as follows: R3500 on or before 05/08/2024 and R3500 on or before 05/06/2024.
- Payment to be made to the plaintiff's account as provided to the defendant. If the defendant fails to pay on the stipulated dates, the whole amount becomes due and payable.
- No order as to costs except for costs of enforcing this order in case of breach by the defendant.
02
Material facts
Parties
MS Kealeboga Molale
Plaintiff Counsel: Mr S.E LetsogoIbrahim Abdelsalam Elarda
Defendant Counsel: Ibrahim Abdelsalam ElardaAmounts and remedies
- Purchase Price Paid by Plaintiff: ZAR 7,000
- First Instalment to Be Refunded: ZAR 3,500
- Second Instalment to Be Refunded: ZAR 3,500
03
Procedural history
Posture
Civil Trial / Final Judgment
04
Questions and positions
Legal issues
- 01
Whether the defendant breached the laybye agreement by failing to deliver the purchased headboard.
- 02
Whether the plaintiff was entitled to cancel the agreement and claim a refund of the purchase price.
- 03
Whether the defendant is obliged to refund the plaintiff the full amount paid under the agreement.
Party arguments
- Applicant
- The plaintiff argued that she entered into a laybye agreement with the defendant for the purchase of a grey velvet king headboard at an agreed price of R7000. She paid the full purchase price in two instalments, but the defendant failed to deliver the headboard. The plaintiff opted to cancel the agreement and demanded a refund of the amount paid. She relied on the Consumer Protection Act, which entitles a consumer to cancel an agreement and claim a refund if goods are not delivered within a reasonable time.
- Respondent
- The defendant failed to deliver the headboard and did not refund the plaintiff. He was given an opportunity to defend the action but did not raise any substantive defence. Ultimately, the parties presented a settlement agreement to the court, admitting the defendant's obligation to refund the plaintiff.
05
Court’s reasoning
Legal principles
- 01
Section 19 of the Consumer Protection Act
A supplier must deliver goods within a reasonable period if no specific delivery time is agreed. If delivery is not made as agreed, the consumer may cancel the agreement without penalty and claim a refund.
- 02
Common law principle
Upon cancellation of a contract due to breach, each party must restore what was received under the contract to the other.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the defendant materially breached the laybye agreement by failing to deliver the headboard purchased by the plaintiff. The plaintiff was entitled to cancel the agreement and claim a refund of the full purchase price paid. The defendant did not raise any valid defence and admitted liability through a settlement agreement. The court ordered cancellation of the agreement and directed the defendant to refund the plaintiff in two instalments, with provision for immediate payment of the full amount in case of default.
Obiter and limits
- Suppliers should ensure delivery of goods within the agreed or reasonable time to avoid risk of contract cancellation and refund obligations.
- Consumers are protected under the Consumer Protection Act and may cancel agreements without penalty if goods are not delivered as promised.
Court disposition
Judgment for the plaintiff; agreement cancelled and defendant ordered to refund the purchase price.
- The settlement agreement entered between the parties is made an order of court.
- The agreement between the parties is ordered cancelled.
- The defendant is ordered to refund the plaintiff R7000, payable as follows: R3500 on or before 05/08/2024 and R3500 on or before 05/06/2024.
- Payment to be made to the plaintiff's account as provided to the defendant. If the defendant fails to pay on the stipulated dates, the whole amount becomes due and payable.
- No order as to costs except for costs of enforcing this order in case of breach by the defendant.
Source and reliance status
Consumer Affairs Court
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Consumer Affairs Court
Judgment
IN
THE CONSUMER
AFFAIRS COURT FOR
THE
NORTH
WEST PROVINCE,
HELD
AT
MMABATHO
CASE NO: NW17/2023
In the matter between: -
MS
KEALEBOGA
MOLALE
PLAINTIFF And
IBRAHIM
ABDELSALAM ELARDA
DEFENDANT
JUDGMENT
Delivered on 26 March 2024
Plaintiff Represented by MrS.E Letsogo
Defendant Represented by Ibrahim Abdelsalam Elarda
CORUM: KJP KGOMONGWE {Tl Rakoka and, ML Kortjas Concurring)
SUMMARY
Plaintiff entered into a lay bye agreement purchased, a headboard from Defendant and Defendant failed to deliver the purchased goods.
ORDER
Agreement ordered cancelled and Defendant ordered to refund the Plaintiff.
[1]
PARTIES
The Plaintiff is MS K Molale an adult female person residing at Pudumoe, Taung, North West.
[2]
DEFENDANT
The Defendant is Mahomed Elarda conducting his business at Shippard Street Mahikeng under trade name and lifestyle furniture.
[3]
BACKGROUND
The parties have on 27/10/2022 entered into a laybye agreement to purchased a grey velvet king headboard from the Defendant at the
agreed purchased price of R7000,00. Plaintiff paid R4000,00 on 27/10/2022 and a balance of R3000,00 was paid on 21/11/2022. Defendant failed to deliver the headboard to the Plaintiff purchased where after Plaintiff opted for the cancellation of the agreement and
demanded refund of R7000,00(seven thousand rand) paid.
[4]
PROCEEDINGS
Defendant failed to refund the Plaintiff and proceedings were instituted by the Consumer Protector against the Defendant in terms of Section 9 of the Consumer Affairs (Harmful Business Practices) Act 4/1996.
Defendant was summoned to appear before court on 22/01/2024 and both parties appeared before court and the matter was postponed to afford the Defendant an opportunity to file his notices to defend the action.
On 26 March 2024 the matter appeared before court and presented to court a settlement agreement to be made an order of court.
[5]
APPLICABLE
LAW
Consumer's right with respect to delivery of goods and supply of services.
Section 19(2)
Rights with respect to delivery of goods or supply of service.
Section 19 of the Consumer Protection Act.
Much of this section simply repeats our common law which requires the supplier in circumstances where a specific performance time has not been agreed to perform the agreement within a reasonable period of time. Novel aspects include the right of the consumer to be given a reasonable period of time to inspect the goods once they have been delivered. This Section also seems to override the common law by stipulating that if the supplier delivers the goods or the performance of the service on a date other than that as agreed, the consumer has a choice to stick to the deal or without penalty to cancel the agreement and to treat the delivered goods or performed services as unsolicited goods. . A supplier who has therefore exceeded the promised supply date would be well advised to ask the consumer in advance before delivering the goods or services whether the consumer wishes to cancel the agreement. If he does not and if he then proceeds to do the delivery he is at risk. In terms of Section 32 of the Act any goods left with the consumer in the process of direct marketing will be deemed to be unsolicited goods.
[7]
FINDING
Having evaluated the facts and documents presented herein this court is satisfied that it has been proven that the Respondent in the present case breached its obligation in terms of the contract entered into between the parties to deliver the goods purchased by the Plaintiff with the result that the Plaintiff never received and/or enjoyed the use of the headboard purchased from the Defendant. Which therefore entitles the Applicant to cancel the agreement and be entitled to be refunded the R7000,00(seven thousand rand) paid .
It is trite law that where a contract has been cancelled due to breach or otherwise the general rule is that each party is bound to restore to the other that which he/she received in terms of the contract.
[8]
CONCLUSION
Accordingly this court conclude that the Defendant materially breached the lay bye/sale agreement regarding the headboard purchased by the Plaintiff. The Plaintiff was therefore entitled to cancel the agreement and validly did so by communicating this election to the Defendant. The Defendant has failed to raise a necessary defence to the Plaintiff's claim.
[9]
ORDER
Having perused all papers filed submissions made the following order is made:
1. The settlement agreement entered between' the parties as admitted in this proceedings marked Exhibit 'A'.
2. The agreement between the parties is ordered cancelled.
3. The Defendant is ordered to refund to the Plaintiff the amount R7000,00(seven thousand rand) payable in the following terms to the Plaintiff's account furnished to the Defendant payable as follows;
3.1 An amount of R3500,00 on/or before 05/08/2024.
3.2 A final instalment of R3500,00 payable on/or before 05/06/2024.
4. The paid amount will be made payable to the Plaintiff's account as provided to the Defendant. Should the Defendant fail to pay the agreed amount on stipulated dated, the whole amount will become due and payable.
5. No order is made to costs safe for the costs of enforcing this order by the Plaintiff in case of breach by the defendant.
DATED
AT
MMABATHO
ON
THIS THE 26th
DAY OF March 2024.
KJP
KGOMONGWE
CHAIRPERSON
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