Putco Ltd. v TV & Radio Guarantee Company (Pty) Ltd.; TV & Radio Guarantee Company (Pty) Ltd. v Putco Ltd.; Putco Ltd. v TV & Radio Guarantee Company (Pty) Ltd.; TV & Radio Guarantee Company (Pty) Ltd. v Putco Ltd. and Others (1) (18404/1981, 18488/1981, 9937/1981, 5165/1982) [1985] ZASCA 72; [1985] 2 All SA 533 (A) (10 September 1985)
The Supreme Court of Appeal held that the agreement between Putco and TV & Radio Guarantee Company was a temporary interim arrangement, not intended to bind the parties indefinitely. The agreement was terminable on reasonable notice, and the inclusion of specific grounds for termination did not preclude termination by reasonable notice. The letter of 26 May 1981, while unequivocal, did not provide a reasonable period of notice, and thus did not validly terminate the agreement. The letter of 23 September 1981, providing six months' notice, was held to be a valid and reasonable notice of termination, effectively terminating the agreement as of 1 April 1982. TV & Radio Guarantee Company's...
- Citation
- [1985] ZASCA 72
- Parties
- Appellant: Putco Limited; Respondent: TV & Radio Guarantee Company (Proprietary) Limited; Cross Appellant: TV & Radio Guarantee Company (Proprietary) Limited; Cross Respondent: Putco Limited; Respondent: Albino Carleo; Respondent: Busadvert (Proprietary) Limited; Respondent: J J Mulder
- Court
- Supreme Court of Appeal
- Jurisdiction
- South Africa
- Judgment Date
- 10 September 1985
- Case Number
- 18404/1981, 18488/1981, 9937/1981, 5165/1982
- Procedural Posture
- Civil Appeal / Appeal From Judgments of the Witwatersrand Local Division; Consolidated Actions and Interlocutory Applications
- Outcome
- Putco's appeal allowed in the consolidated action; TV & Radio Guarantee Company's cross-appeal dismissed; costs orders varied as specified.
- Judges
- KOTZé, JOUBERT, TRENGOVE, VILJOEN, SMALBERGER
- Legal Topics
- Termination of Contract, Reasonable Notice, Exclusive Rights, Interdict, Costs Award
Case Brief
Summary, issues, holding and outcome
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Parties
Putco Limited
Appellant
TV & Radio Guarantee Company (Proprietary) Limited
Respondent
TV & Radio Guarantee Company (Proprietary) Limited
Cross Appellant
Putco Limited
Cross Respondent
Albino Carleo
Respondent
Busadvert (Proprietary) Limited
Respondent
J J Mulder
Respondent
Procedural Posture
Civil Appeal / Appeal From Judgments of the Witwatersrand Local Division; Consolidated Actions and Interlocutory Applications
Legal Issues
- 1 Was the agreement between Putco and TV & Radio Guarantee Company terminable on reasonable notice or only on specified grounds?
- 2 Did the letters of 26 May 1981 and 23 September 1981 constitute valid and reasonable notices of termination?
- 3 Was TV & Radio Guarantee Company entitled to a final interdict to restrain Putco from breaching the agreement?
Ratio Decidendi
The Supreme Court of Appeal held that the agreement between Putco and TV & Radio Guarantee Company was a temporary interim arrangement, not intended to bind the parties indefinitely. The agreement was terminable on reasonable notice, and the inclusion of specific grounds for termination did not preclude termination by reasonable notice. The letter of 26 May 1981, while unequivocal, did not provide a reasonable period of notice, and thus did not validly terminate the agreement. The letter of 23 September 1981, providing six months' notice, was held to be a valid and reasonable notice of termination, effectively terminating the agreement as of 1 April 1982. TV & Radio Guarantee Company's...
Court Disposition
Putco's appeal allowed in the consolidated action; TV & Radio Guarantee Company's cross-appeal dismissed; costs orders varied as specified.
Orders
- It is declared that the only agreement between the parties is that recorded in the letter of 9 August 1976 (Annexure 'C').
- It is further declared that such agreement was validly terminated as from 1 April 1982 consequent upon the notice of termination dated 23 September 1981 (Annexure 'BB').
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