PG Sharedealing (Pty) Ltd v First Realty Randburg (Pty) Ltd t/a Chas Everitt International Property Group (A5058/2017) [2018] ZAGPJHC 645 (3 December 2018)

PG Sharedealing (Pty) Ltd v First Realty Randburg (Pty) Ltd t/a Chas Everitt International Property Group (A5058/2017) [2018] ZAGPJHC 645 (3 December 2018)

The court held that the respondent, as a party to the agreement, accepted the benefit conferred by the stipulatio alteri and was entitled to enforce the commission clause. The suspensive condition regarding bond finance was not fulfilled within the initial 30-day period, but the agreement vested the respondent with a sole discretion to extend this period by 10 days, which was exercised. The suspensive condition was fulfilled within the extended period, and the respondent became entitled to commission upon cancellation of the agreement. Regarding statutory compliance, the respondent produced fidelity fund certificates for the company for the relevant years, satisfying the substantial...

Citation
[2018] ZAGPJHC 645
Parties
Appellant: PG Sharedealing (Pty) Ltd; Respondent: First Realty Randburg (Pty) Ltd t/a Chas Everitt International Property Group
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
3 December 2018
Case Number
A5058/2017
Procedural Posture
Civil Appeal / Full Bench Appeal From Opposed Application; Judgment Delivered
Outcome
Appeal dismissed with costs.
Judges
Wanless, Ismail, Twala
Legal Topics
Estate Agent Commission, Suspensive Condition, Stipulatio Alteri, Fidelity Fund Certificate, Contractual Discretion, Statutory Compliance
Commercial and Corporate Land and Property Estate Agent Commission Suspensive Condition Stipulatio Alteri Fidelity Fund Certificate Contractual Discretion Statutory Compliance

Case Brief

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Parties

PG Sharedealing (Pty) Ltd

Appellant

First Realty Randburg (Pty) Ltd t/a Chas Everitt International Property Group

Respondent

Procedural Posture

Civil Appeal / Full Bench Appeal From Opposed Application; Judgment Delivered

Legal Issues

  1. 1 Whether the respondent lawfully earned estate agent's commission under the agreement despite non-fulfilment of a suspensive condition.
  2. 2 Whether the respondent exercised its contractual discretion to extend the period for fulfilment of the suspensive condition.
  3. 3 Whether the respondent complied with section 34A(1)(b) of the Estate Agency Affairs Act 112 of 1976 regarding fidelity fund certificates for directors.

Ratio Decidendi

The court held that the respondent, as a party to the agreement, accepted the benefit conferred by the stipulatio alteri and was entitled to enforce the commission clause. The suspensive condition regarding bond finance was not fulfilled within the initial 30-day period, but the agreement vested the respondent with a sole discretion to extend this period by 10 days, which was exercised. The suspensive condition was fulfilled within the extended period, and the respondent became entitled to commission upon cancellation of the agreement. Regarding statutory compliance, the respondent produced fidelity fund certificates for the company for the relevant years, satisfying the substantial...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed, with costs.
  • The costs to be paid by the appellant (on a party and party scale) are to include the costs of the application for leave to appeal to the Full Court of the Gauteng Local Division of the High Court, Johannesburg and the costs of the application for leave to appeal in the Supreme Court of Appeal of South Africa.