Scoin Trading (Pty) Ltd v Bernstein (29/2010) [2010] ZASCA 160; 2011 (2) SA 118 (SCA) ; [2011] 2 All SA 608 (SCA) (1 December 2010)

Scoin Trading (Pty) Ltd v Bernstein (29/2010) [2010] ZASCA 160; 2011 (2) SA 118 (SCA) ; [2011] 2 All SA 608 (SCA) (1 December 2010)

The Supreme Court of Appeal held that the contract fixed the date for payment of the balance of the purchase price as 31 December 2007, and that the deceased's estate was liable for interest from 1 January 2008 due to mora ex re. The court rejected the respondent's argument that payment was conditional upon receipt of property sale proceeds, finding that the agreement required payment by the end of December. The court further held that liability for mora interest does not depend on culpability or wrongful conduct, but arises from failure to perform on the stipulated date. Death of the debtor does not constitute supervening impossibility for payment of a monetary obligation, and the estate...

Citation
[2010] ZASCA 160
Parties
Appellant: Scoin Trading (Pty) Limited; Respondent: Bernstein, Gillies Martin NO
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
1 December 2010
Case Number
29/2010
Procedural Posture
Civil Appeal / Appeal From First Instance Judgment
Outcome
Appeal upheld with costs. The estate of the deceased is liable for interest on the outstanding purchase price from 1 January 2008 until payment.
Judges
Harms, Snyders, K Pillay
Legal Topics
Breach of Contract, Mora Interest, Estate Liability, Supervening Impossibility
Commercial and Corporate Breach of Contract Mora Interest Estate Liability Supervening Impossibility

Case Brief

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Parties

Scoin Trading (Pty) Limited

Appellant

Bernstein, Gillies Martin NO

Respondent

Procedural Posture

Civil Appeal / Appeal From First Instance Judgment

Legal Issues

  1. 1 Whether the estate of the deceased is liable for payment of interest on the outstanding purchase price after the debtor's death.
  2. 2 Whether the contract fixed the date for payment or made it conditional upon receipt of proceeds from property sale.
  3. 3 Whether death of the debtor constitutes supervening impossibility excusing performance.

Ratio Decidendi

The Supreme Court of Appeal held that the contract fixed the date for payment of the balance of the purchase price as 31 December 2007, and that the deceased's estate was liable for interest from 1 January 2008 due to mora ex re. The court rejected the respondent's argument that payment was conditional upon receipt of property sale proceeds, finding that the agreement required payment by the end of December. The court further held that liability for mora interest does not depend on culpability or wrongful conduct, but arises from failure to perform on the stipulated date. Death of the debtor does not constitute supervening impossibility for payment of a monetary obligation, and the estate...

Court Disposition

Appeal upheld with costs. The estate of the deceased is liable for interest on the outstanding purchase price from 1 January 2008 until payment.

Orders

  • The appeal is upheld with costs.
  • The respondent is directed to make payment of interest on the sum of R1,750,000 at the rate of 15.5% per annum from 1 January 2008 to date of payment.