Oelofse v Prokureurs (A706/2012) [2015] ZAGPPHC 963 (13 November 2015)

Oelofse v Prokureurs (A706/2012) [2015] ZAGPPHC 963 (13 November 2015)

The court found that the letter dated 1 April 2008 constituted an unconditional guarantee binding on the respondent. The guarantee was not conditional upon receipt of profit share from Abrina 2537 (PTY) Ltd and was intended to facilitate the purchase of Wiesenhof Business Park. The purported withdrawal of the guarantee was ineffective, as the debt had already accrued by the time notice of withdrawal was given. There was no evidence of novation or valid cancellation by consensus. The respondent's defence of agency and withdrawal failed, as the guarantee remained enforceable. The plaintiff was entitled to payment of R1 000 000 under the guarantee and to damages of R200 000 for the forfeited...

Citation
[2015] ZAGPPHC 963
Parties
Appellant: Johan Oelofse; Respondent: Steyn Lyell Maeyane Prokureurs
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
13 November 2015
Case Number
A706/2012
Procedural Posture
Civil Appeal / Appeal Against the Whole Decision of the Court a Quo
Outcome
Appeal upheld; order of the court a quo set aside and substituted with judgment for the appellant.
Judges
M F Legodi, L M Molopa-Sethosa, N B Tucgten
Legal Topics
Guarantee Enforceability, Contractual Interpretation, Parol Evidence Rule, Novation, Damages for Breach
Commercial and Corporate Civil Procedure Guarantee Enforceability Contractual Interpretation Parol Evidence Rule Novation Damages for Breach

Case Brief

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Parties

Johan Oelofse

Appellant

Steyn Lyell Maeyane Prokureurs

Respondent

Procedural Posture

Civil Appeal / Appeal Against the Whole Decision of the Court a Quo

Legal Issues

  1. 1 Whether the guarantee for payment of R1 000 000 was unconditional.
  2. 2 Whether the guarantee was validly withdrawn or novated.
  3. 3 Whether the plaintiff is entitled to damages of R200 000 due to forfeited deposit.

Ratio Decidendi

The court found that the letter dated 1 April 2008 constituted an unconditional guarantee binding on the respondent. The guarantee was not conditional upon receipt of profit share from Abrina 2537 (PTY) Ltd and was intended to facilitate the purchase of Wiesenhof Business Park. The purported withdrawal of the guarantee was ineffective, as the debt had already accrued by the time notice of withdrawal was given. There was no evidence of novation or valid cancellation by consensus. The respondent's defence of agency and withdrawal failed, as the guarantee remained enforceable. The plaintiff was entitled to payment of R1 000 000 under the guarantee and to damages of R200 000 for the forfeited...

Court Disposition

Appeal upheld; order of the court a quo set aside and substituted with judgment for the appellant.

Orders

  • The appeal succeeds; the respondent is to pay the costs of the appeal.
  • Judgment is granted against the defendant for payment of R1 000 000.