Pentabod (Pty) Ltd v Hazelden and Others (10169/04) [2008] ZAWCHC 87 (23 July 2008)

Pentabod (Pty) Ltd v Hazelden and Others (10169/04) [2008] ZAWCHC 87 (23 July 2008)

Clause 20 of the deed of sale is clear and unequivocal in granting an option to purchase a specified portion of land at a set price. The property is sufficiently identified by the shaded area on the attached diagram, meeting statutory requirements. The absence of a time period does not invalidate the option, and the Trust has not made out a case for rectification. The applicant has validly exercised its rights under the option and is entitled to transfer of the property upon subdivision, against payment of the purchase price. The Trust is ordered to pay the applicant's costs.

Citation
[2008] ZAWCHC 87
Parties
Applicant: Pentabod (Pty) Ltd; Respondent: George Thomas Hazelden; Respondent: Derrick Delson; Respondent: Edward Stuart Delson; Respondent: Frank Theodore Vlok; Respondent: Julian Weil
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
23 July 2008
Case Number
10169/04
Procedural Posture
Civil Application / Judgment
Outcome
Application granted in favour of the applicant.
Judges
Desai
Legal Topics
Option to Purchase, Identification of Property, Rectification of Contract, Right of Pre Emption
Land and Property Commercial and Corporate Option to Purchase Identification of Property Rectification of Contract Right of Pre Emption

Case Brief

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Parties

Pentabod (Pty) Ltd

Applicant

George Thomas Hazelden

Respondent

Derrick Delson

Respondent

Edward Stuart Delson

Respondent

Frank Theodore Vlok

Respondent

Julian Weil

Respondent

Procedural Posture

Civil Application / Judgment

Legal Issues

  1. 1 Whether clause 20 of the deed of sale constitutes a valid option to purchase in favour of the applicant.
  2. 2 Whether the property described in clause 20 is sufficiently identified to comply with statutory requirements.
  3. 3 Whether the absence of a time period for the option invalidates it.

Ratio Decidendi

Clause 20 of the deed of sale is clear and unequivocal in granting an option to purchase a specified portion of land at a set price. The property is sufficiently identified by the shaded area on the attached diagram, meeting statutory requirements. The absence of a time period does not invalidate the option, and the Trust has not made out a case for rectification. The applicant has validly exercised its rights under the option and is entitled to transfer of the property upon subdivision, against payment of the purchase price. The Trust is ordered to pay the applicant's costs.

Court Disposition

Application granted in favour of the applicant.

Orders

  • Clause 20 of the Deed of Sale constitutes an option granted in favour of the applicant to purchase the property described therein at R50 per square metre plus VAT.
  • The applicant has validly exercised its rights in terms of the option and is entitled to transfer of the property, upon its subdivision, against payment of the purchase price.