Van Streepen & Germs (Pty) Ltd v Transvaal Provincial Administartion (71/87) [1987] ZASCA 69 (21 August 1987)

Van Streepen & Germs (Pty) Ltd v Transvaal Provincial Administartion (71/87) [1987] ZASCA 69 (21 August 1987)

The Supreme Court of Appeal held that the declaratory order made by the court a quo was appealable, as it was final and definitive in nature, disposing of a substantial portion of the relief claimed by the appellant. On the merits, the Court found that clause 3(6) of the Conditions of Contract applies only to consensual cancellations or variations, not to cases of wrongful cancellation by the employer. The clause does not displace the contractor's common law rights to claim full damages for breach. The wording and context of clause 3(6), the nature of the contract, and the parties' contemplation of potential losses all supported a narrow construction. The respondent's interpretation would...

Citation
[1987] ZASCA 69
Parties
Appellant: Van Streepen & Germs (Pty) Ltd; Respondent: Transvaal Provincial Administration
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
21 August 1987
Case Number
71/87
Procedural Posture
Civil Appeal / Appeal Against Declaratory Order on Liability and Quantum Limitation Under Contract
Outcome
Appeal allowed; declaratory order amended to reflect that damages are not limited by clause 3(6) in cases of wrongful cancellation.
Judges
Corbett, Botha, Hefer, Grosskopf, Nestadt
Legal Topics
Building Contracts, Quantum of Damages, Contractual Exemption Clauses, Declaratory Orders, Appealability, Variation of Contract
Commercial and Corporate Civil Procedure Building Contracts Quantum of Damages Contractual Exemption Clauses Declaratory Orders Appealability Variation of Contract

Case Brief

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Parties

Van Streepen & Germs (Pty) Ltd

Appellant

Transvaal Provincial Administration

Respondent

Procedural Posture

Civil Appeal / Appeal Against Declaratory Order on Liability and Quantum Limitation Under Contract

Legal Issues

  1. 1 Whether the declaratory order limiting damages under clause 3(6) of the contract is appealable.
  2. 2 Whether clause 3(6) of the Conditions of Contract applies to damages for wrongful cancellation by the employer.
  3. 3 Whether the contractor's common law rights to damages are displaced by clause 3(6) in cases of wrongful cancellation.

Ratio Decidendi

The Supreme Court of Appeal held that the declaratory order made by the court a quo was appealable, as it was final and definitive in nature, disposing of a substantial portion of the relief claimed by the appellant. On the merits, the Court found that clause 3(6) of the Conditions of Contract applies only to consensual cancellations or variations, not to cases of wrongful cancellation by the employer. The clause does not displace the contractor's common law rights to claim full damages for breach. The wording and context of clause 3(6), the nature of the contract, and the parties' contemplation of potential losses all supported a narrow construction. The respondent's interpretation would...

Court Disposition

Appeal allowed; declaratory order amended to reflect that damages are not limited by clause 3(6) in cases of wrongful cancellation.

Orders

  • The application in limine is dismissed with costs, including the costs of two counsel.
  • The appeal is allowed with costs, including the costs of two counsel.