Naidoo and Another v Wakefields Real Estate (Pty) Limited (AT638/17) [2023] ZAKZPHC 95 (22 September 2023)

Naidoo and Another v Wakefields Real Estate (Pty) Limited (AT638/17) [2023] ZAKZPHC 95 (22 September 2023)

The court held that the purchase and sale agreement was validly concluded, as Mrs Reuben had the authority to sign for both herself and her husband by virtue of a power of attorney. The amendment to the commission clause, which reduced the commission, did not prejudice the appellants and was within the agent's authority. The caveat subscriptor doctrine applied, binding the appellants to the contract they signed, regardless of whether they read or understood all its terms. There was no evidence of misrepresentation or inducement by the respondent's agent, and the appellants' alleged mistake did not amount to iustus error, as it was not reasonable nor based on any misrepresentation. The...

Citation
[2023] ZAKZPHC 95
Parties
Appellant: Patgonan Naidoo; Appellant: Thavanthree Naidoo; Respondent: Wakefields Real Estate (Pty) Limited
Court
Kwazulu-Natal High Court, Pietermaritzburg
Jurisdiction
South Africa
Judgment Date
22 September 2023
Case Number
AT638/17
Procedural Posture
Civil Appeal / Appeal From the Chatsworth Magistrates Court
Outcome
Appeal dismissed with costs.
Judges
Henriques, Mlaba
Legal Topics
Estate Agent Commission, Alienation of Land Act, Caveat Subscriptor, Stipulatio Alteri, Misrepresentation, Iustus Error
Commercial and Corporate Land and Property Civil Procedure Estate Agent Commission Alienation of Land Act Caveat Subscriptor Stipulatio Alteri Misrepresentation +1 more

Case Brief

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Parties

Patgonan Naidoo

Appellant

Thavanthree Naidoo

Appellant

Wakefields Real Estate (Pty) Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From the Chatsworth Magistrates Court

Legal Issues

  1. 1 Whether the failure of one seller to sign the purchase and sale agreement twice invalidated the agreement.
  2. 2 Whether the amendment to the commission clause affected the respondent's right to claim commission.
  3. 3 Whether the respondent's failure to expressly communicate acceptance of the commission clause precluded its claim.

Ratio Decidendi

The court held that the purchase and sale agreement was validly concluded, as Mrs Reuben had the authority to sign for both herself and her husband by virtue of a power of attorney. The amendment to the commission clause, which reduced the commission, did not prejudice the appellants and was within the agent's authority. The caveat subscriptor doctrine applied, binding the appellants to the contract they signed, regardless of whether they read or understood all its terms. There was no evidence of misrepresentation or inducement by the respondent's agent, and the appellants' alleged mistake did not amount to iustus error, as it was not reasonable nor based on any misrepresentation. The...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.