Naidoo v Roberts and Another (2694/2007) [2008] ZAKZHC 54 (25 July 2008)

Naidoo v Roberts and Another (2694/2007) [2008] ZAKZHC 54 (25 July 2008)

Clause 1.2 of the sale agreement is a suspensive condition requiring the applicant to obtain a bank or building society guarantee for the purchase price within thirty days of signature. The applicant failed to fulfil this condition within the stipulated period, as the bank guarantee was only obtained after the thirty-day period had expired. The suspensive condition was not inserted solely for the benefit of the applicant, and its non-fulfilment rendered the contract void automatically. The applicant was not entitled to specific performance, and the application must be dismissed.

Citation
[2008] ZAKZHC 54
Parties
Applicant: Priscilla Naidoo; Respondent: Lillian Roberts; Respondent: Registrar of Deeds for the Province of Kwazulu-Natal
Court
High Courts - Kwazulu Natal
Jurisdiction
South Africa
Judgment Date
25 July 2008
Case Number
2694/2007
Procedural Posture
Urgent Application / Application for Specific Performance
Outcome
Application dismissed with costs.
Judges
Ntshangase
Legal Topics
Specific Performance, Suspensive Condition, Sale of Immovable Property, Contract Void for Nonfulfilment
Land and Property Civil Procedure Specific Performance Suspensive Condition Sale of Immovable Property Contract Void for Nonfulfilment

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Parties

Priscilla Naidoo

Applicant

Lillian Roberts

Respondent

Registrar of Deeds for the Province of Kwazulu-Natal

Respondent

Procedural Posture

Urgent Application / Application for Specific Performance

Legal Issues

  1. 1 Whether clause 1.2 of the sale agreement constitutes a suspensive condition or a mere term of the contract.
  2. 2 Whether the applicant fulfilled the suspensive condition within the stipulated period.
  3. 3 Whether the contract became void due to non-fulfilment of the suspensive condition.

Ratio Decidendi

Clause 1.2 of the sale agreement is a suspensive condition requiring the applicant to obtain a bank or building society guarantee for the purchase price within thirty days of signature. The applicant failed to fulfil this condition within the stipulated period, as the bank guarantee was only obtained after the thirty-day period had expired. The suspensive condition was not inserted solely for the benefit of the applicant, and its non-fulfilment rendered the contract void automatically. The applicant was not entitled to specific performance, and the application must be dismissed.

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed.
  • The applicant is to pay the costs.