Mpumelelo Projects Construction CC v Sasol Wax (Pty) Ltd (720/2007) [2014] ZAFSHC 3 (23 January 2014)

Mpumelelo Projects Construction CC v Sasol Wax (Pty) Ltd (720/2007) [2014] ZAFSHC 3 (23 January 2014)

The plaintiff failed to prove any misrepresentation by the defendant that induced the contract. The evidence established that the general terms of sale, including exclusion and limitation of liability clauses, were incorporated into the contract by reference and acceptance through the credit application process. The MOU and business plan lacked sufficient specificity to constitute a binding supply agreement and amounted at best to an agreement to agree, which is unenforceable. The plaintiff did not plead or prove the existence of a legal duty of care in delict, nor did it establish negligence, inducement, causation, or quantum of damages. The exclusion clauses expressly precluded...

Citation
[2014] ZAFSHC 3
Parties
Plaintiff: Mpumelelo Projects Construction CC; Defendant: Sasol Wax (Pty) Ltd
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
23 January 2014
Case Number
720/2007
Procedural Posture
Civil Trial / Final Judgment After Remittal From Appeal
Outcome
Plaintiff's claim dismissed with costs, including costs of two counsels and qualifying and reservation fees of specified experts.
Judges
Rampai
Legal Topics
Breach of Contract, Exclusion of Liability, Misrepresentation, Pure Economic Loss, Onus of Proof
Commercial and Corporate Civil Procedure Breach of Contract Exclusion of Liability Misrepresentation Pure Economic Loss Onus of Proof

Case Brief

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Parties

Mpumelelo Projects Construction CC

Plaintiff

Sasol Wax (Pty) Ltd

Defendant

Procedural Posture

Civil Trial / Final Judgment After Remittal From Appeal

Legal Issues

  1. 1 Whether the plaintiff proved a misrepresentation by the defendant inducing the contract.
  2. 2 Whether the defendant owed the plaintiff a duty of care in delict for pure economic loss.
  3. 3 Whether the general terms of sale, including exclusion clauses, were incorporated into the contract.

Ratio Decidendi

The plaintiff failed to prove any misrepresentation by the defendant that induced the contract. The evidence established that the general terms of sale, including exclusion and limitation of liability clauses, were incorporated into the contract by reference and acceptance through the credit application process. The MOU and business plan lacked sufficient specificity to constitute a binding supply agreement and amounted at best to an agreement to agree, which is unenforceable. The plaintiff did not plead or prove the existence of a legal duty of care in delict, nor did it establish negligence, inducement, causation, or quantum of damages. The exclusion clauses expressly precluded...

Court Disposition

Plaintiff's claim dismissed with costs, including costs of two counsels and qualifying and reservation fees of specified experts.

Orders

  • The plaintiff’s claim is dismissed with costs, including the costs consequent upon the employment of two counsels.
  • Costs shall include the qualifying and reservation fees of Prof Philip Lloyd, Ms Carina Fritz, Mr Johannes Hendrik Rossouw, Mr Nicolas Louw, and Mr Justus van Wyk.