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 (2) (18404/1981, 18488/1981, 9937/1981, 5165/1982) [1985] ZASCA 73; [1985] 2 All SA 533 (A) (10 September 1985)
The Supreme Court of Appeal held that the agreement between Putco Limited and TV & Radio Guarantee Company was a temporary interim arrangement, not intended to be of indefinite duration. The court found that Putco was entitled to terminate the agreement on reasonable notice. The notice given in annexure 'O' was deemed reasonable, as there was no evidence to suggest otherwise. The investments and expenses incurred by TV & Radio Guarantee Company did not render the notice unreasonable, as the company had reaped substantial benefits during the arrangement. The court distinguished the facts from the Decro-Wall case, noting the lack of evidence that TV & Radio Guarantee Company would suffer...
- Citation
- [1985] ZASCA 73
- Parties
- Appellant: Putco Limited; Respondent: TV & Radio Guarantee Company (Proprietary) Limited; Cross Appellant: TV & Radio Guarantee Company (Proprietary) Limited; Cross Respondent: Putco Limited; Respondent: [Proprietary] Limited; Appellant: [Proprietary] Limited; First Respondent: Putco Limited; Second Respondent: Albino Carleo; Third Respondent: Busadvert (Proprietary) Limited; Fourth 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 the Court a Quo
- Outcome
- Appeal upheld; notice of termination found valid and reasonable.
- Judges
- Kotzé, Joubert, Trengove, Viljoen, Smalberger
- Legal Topics
- Termination of Contract, Reasonable Notice, Interim Agreement, Specific Performance
Case Brief
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Putco Limited
Appellant
TV & Radio Guarantee Company (Proprietary) Limited
Respondent
TV & Radio Guarantee Company (Proprietary) Limited
Cross Appellant
Putco Limited
Cross Respondent
[Proprietary] Limited
Respondent
[Proprietary] Limited
Appellant
Putco Limited
First Respondent
Albino Carleo
Second Respondent
Busadvert (Proprietary) Limited
Third Respondent
J J Mulder
Fourth Respondent
Procedural Posture
Civil Appeal / Appeal From the Court a Quo
Legal Issues
- 1 Whether the notice of termination given by Putco Limited was valid and reasonable under the interim agreement.
- 2 Whether the temporary interim arrangement could be terminated on reasonable notice.
- 3 Whether TV & Radio Guarantee Company suffered unreasonable prejudice due to the notice period.
Ratio Decidendi
The Supreme Court of Appeal held that the agreement between Putco Limited and TV & Radio Guarantee Company was a temporary interim arrangement, not intended to be of indefinite duration. The court found that Putco was entitled to terminate the agreement on reasonable notice. The notice given in annexure 'O' was deemed reasonable, as there was no evidence to suggest otherwise. The investments and expenses incurred by TV & Radio Guarantee Company did not render the notice unreasonable, as the company had reaped substantial benefits during the arrangement. The court distinguished the facts from the Decro-Wall case, noting the lack of evidence that TV & Radio Guarantee Company would suffer...
Court Disposition
Appeal upheld; notice of termination found valid and reasonable.
Orders
- The appeal is upheld.
- The notice of termination given by Putco Limited in annexure 'O' is declared valid and reasonable.
Full Case Text
Judgment text and source record
Sign in to read
Sign in to read the full judgment text
Sign in to read the full judgment text. Downloads and additional research tools may depend on your plan.
Sign in to read the full judgment