Sasfin (Pty) Ltd v Beukes (149/87) [1988] ZASCA 94; [1989] 1 All SA 347 (A) (19 September 1988)

Sasfin (Pty) Ltd v Beukes (149/87) [1988] ZASCA 94; [1989] 1 All SA 347 (A) (19 September 1988)

The Supreme Court of Appeal held that several clauses in the deed of cession executed by Beukes in favour of Sasfin were contrary to public policy. These clauses allowed Sasfin to collect and retain all of Beukes' income indefinitely, regardless of any actual indebtedness, and deprived Beukes of his means of support. Other clauses, such as those permitting parate executie, certificate of indebtedness, and commission, were found to be exploitative and unconscionable. The court found that these offending clauses were fundamental to the contract and not severable from the remainder. As a result, the entire deed of cession was declared invalid and unenforceable. The court rejected the...

Citation
[1988] ZASCA 94
Parties
Appellant: Sasfin (Proprietary) Limited; Respondent: Hendrik Johannes Stefanus Beukes
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
19 September 1988
Case Number
149/87
Procedural Posture
Civil Appeal / Appeal From the Witwatersrand Local Division
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Rabie, Jansen, Van Heerden, Smalberger, Nestadt
Legal Topics
Cession of Book Debts, Public Policy in Contract, Severability of Contract Terms, Pactum Commissorium, Parate Executie, Certificate of Indebtedness
Commercial and Corporate Civil Procedure Cession of Book Debts Public Policy in Contract Severability of Contract Terms Pactum Commissorium Parate Executie Certificate of Indebtedness

Case Brief

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Parties

Sasfin (Proprietary) Limited

Appellant

Hendrik Johannes Stefanus Beukes

Respondent

Procedural Posture

Civil Appeal / Appeal From the Witwatersrand Local Division

Legal Issues

  1. 1 Whether the deed of cession executed by Beukes in favour of Sasfin is valid and enforceable.
  2. 2 Whether certain clauses in the deed of cession are contrary to public policy.
  3. 3 Whether the offending clauses are severable from the remainder of the deed of cession.

Ratio Decidendi

The Supreme Court of Appeal held that several clauses in the deed of cession executed by Beukes in favour of Sasfin were contrary to public policy. These clauses allowed Sasfin to collect and retain all of Beukes' income indefinitely, regardless of any actual indebtedness, and deprived Beukes of his means of support. Other clauses, such as those permitting parate executie, certificate of indebtedness, and commission, were found to be exploitative and unconscionable. The court found that these offending clauses were fundamental to the contract and not severable from the remainder. As a result, the entire deed of cession was declared invalid and unenforceable. The court rejected the...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, such costs to include the costs of two counsel.