Ronlou Property Development (Edms) Beperk v Lackay and Others (1443/05) [2005] ZAWCHC 47 (5 July 2005)

Ronlou Property Development (Edms) Beperk v Lackay and Others (1443/05) [2005] ZAWCHC 47 (5 July 2005)

The court held that the addendum to the contract placed the obligation on the purchaser to effect transfer as soon as possible, which in turn required the purchaser to make timely arrangements for the necessary guarantee. The respondents were entitled to request the guarantee within a reasonable time after the addendum was signed. The applicant failed to provide the guarantee within the stipulated period and was thus in mora, entitling the respondents to validly cancel the contract. The court further found that the contractual provision requiring the guarantee to be provided within seven days of written request was not superfluous and supplemented the common law rule, allowing the seller...

Citation
[2005] ZAWCHC 47
Parties
Applicant: Ronlou Property Development (Edms) Beperk; Respondent: Lotter Frank Lackay; Respondent: Estelle Lackay; Respondent: Nimro 132 (Edms) Beperk
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
5 July 2005
Case Number
1443/05
Procedural Posture
Urgent Application / Final Hearing and Judgment
Outcome
Application dismissed with costs.
Judges
HJ Erasmus
Legal Topics
Specific Performance, Contract Cancellation, Bank Guarantee, Mora, Interpretation of Contracts
Land and Property Civil Procedure Specific Performance Contract Cancellation Bank Guarantee Mora Interpretation of Contracts

Case Brief

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Parties

Ronlou Property Development (Edms) Beperk

Applicant

Lotter Frank Lackay

Respondent

Estelle Lackay

Respondent

Nimro 132 (Edms) Beperk

Respondent

Procedural Posture

Urgent Application / Final Hearing and Judgment

Legal Issues

  1. 1 Whether the applicant was in mora for failing to provide a guarantee within the period stipulated in the contract.
  2. 2 Whether the respondents were entitled to cancel the contract for breach.
  3. 3 Whether the contractual clause regarding the timing of the guarantee modifies the common law rule.

Ratio Decidendi

The court held that the addendum to the contract placed the obligation on the purchaser to effect transfer as soon as possible, which in turn required the purchaser to make timely arrangements for the necessary guarantee. The respondents were entitled to request the guarantee within a reasonable time after the addendum was signed. The applicant failed to provide the guarantee within the stipulated period and was thus in mora, entitling the respondents to validly cancel the contract. The court further found that the contractual provision requiring the guarantee to be provided within seven days of written request was not superfluous and supplemented the common law rule, allowing the seller...

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.