Specialised Utility and Management Services (Pty) Ltd v Dimant [2011] ZAGPJHC 123; A3104/10 (23 September 2011)

Specialised Utility and Management Services (Pty) Ltd v Dimant [2011] ZAGPJHC 123; A3104/10 (23 September 2011)

The court found that an oral agreement was concluded between the parties in December 2005, in terms of which the respondent was to acquire a 10% shareholding in the appellant in exchange for a payment of R100,000.00. The evidence, including correspondence and testimony, supported the respondent's version that the payment was for shares and not for working capital for the FNB project. The appellant failed to deliver the shares, constituting a breach of contract, and the respondent was entitled to cancel the agreement and claim a refund. The appellant's explanation for the delay in prosecuting the appeal was found to be unsatisfactory, as the appellant had sufficient funds available and...

Citation
[2011] ZAGPJHC 123
Parties
Appellant: Specialised Utility and Management Services (Pty) Ltd; Respondent: Simon Dimant
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
23 September 2011
Case Number
A3104/10
Procedural Posture
Civil Appeal / Appeal From Magistrate's Court Judgment
Outcome
Appeal dismissed with costs; application for condonation refused.
Judges
B H Mbha, F Kathree-Setiloane
Legal Topics
Oral Share Sale Agreement, Unjust Enrichment, Contract Cancellation, Refund of Purchase Price
Commercial and Corporate Oral Share Sale Agreement Unjust Enrichment Contract Cancellation Refund of Purchase Price

Case Brief

Summary, issues, holding and outcome

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Parties

Specialised Utility and Management Services (Pty) Ltd

Appellant

Simon Dimant

Respondent

Procedural Posture

Civil Appeal / Appeal From Magistrate's Court Judgment

Legal Issues

  1. 1 Whether an oral agreement for the sale of shares was concluded between the parties.
  2. 2 Whether the plaintiff was entitled to a refund of R100,000.00 due to breach of contract.
  3. 3 Whether the payment was intended as a share purchase or as working capital for a specific project.

Ratio Decidendi

The court found that an oral agreement was concluded between the parties in December 2005, in terms of which the respondent was to acquire a 10% shareholding in the appellant in exchange for a payment of R100,000.00. The evidence, including correspondence and testimony, supported the respondent's version that the payment was for shares and not for working capital for the FNB project. The appellant failed to deliver the shares, constituting a breach of contract, and the respondent was entitled to cancel the agreement and claim a refund. The appellant's explanation for the delay in prosecuting the appeal was found to be unsatisfactory, as the appellant had sufficient funds available and...

Court Disposition

Appeal dismissed with costs; application for condonation refused.

Orders

  • The application for condonation for the late prosecution of the appeal is refused.
  • The appeal is dismissed with costs.