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South Africa Judgment

High Courts - Gauteng

Viljoen and Another v Rademeyer and Another (15967/2006) [2007] ZAGPHC 38 (25 April 2007)

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01

Holding and result

The court found that there are material disputes of fact regarding the intention and terms of the agreement between the parties, specifically whether the resignation and share transfer were unconditional and binding. The affidavits do not resolve these disputes, and the credibility of the parties' versions cannot be determined without oral evidence. The court declined to read a tacit term into the agreement on the papers and held that the matter cannot be decided on motion. Accordingly, the application is referred to trial, where the issues can be properly ventilated and determined on evidence.

Court disposition

Application referred to trial; costs reserved for determination by the trial court.

Orders

  • The application is referred to trial.
  • The notice of motion shall serve as a simple summons.
  • The notice of intention to oppose shall serve as a notice of intention to defend.
  • The applicant shall deliver a declaration within 20 days of this order; thereafter, all rules applicable to actions shall apply.
  • Costs of the application are reserved for determination by the trial court.

02

Material facts

Parties

Petrus Jacobus Viljoen

Applicant Counsel: Adv A M van Wyk

Proline Trading 82 (Pty) Ltd

Applicant Counsel: Adv A M van Wyk

Enrico Johan Rademeyer

Respondent Counsel: Adv I M Bredenkamp

Van Dyk & Horn Attorneys

Respondent Counsel: Adv I M Bredenkamp

Amounts and remedies

  • Share Transfer Consideration: ZAR 100,000

03

Procedural history

  1. Posture

    Civil Application / Referral to Trial After Opposed Motion

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants contend that the first respondent resigned as director and agreed to transfer his 50% shareholding in Proline Trading 82 (Pty) Ltd to the first applicant for R100,000. They argue that any factual disputes raised by the respondent are not bona fide and do not preclude final relief on motion. They further submit that the agreement should be interpreted to include a tacit term that the shares and loan account are to be transferred to the first applicant for the stated amount.
Respondent
The first respondent opposes the application, arguing that there is a genuine dispute of fact regarding the intention and terms of the agreement. He claims that the resignation and share transfer were subject to certain conditions and that there was no animus contrahendi. He requests that the application be dismissed or referred to trial for oral evidence, asserting that the agreement was not intended to be binding as drafted.

05

Court’s reasoning

  1. 01

    Beaton v Baldachin Bros 1920 AD 312

    A party to a written agreement cannot vary its terms by parol evidence, but may lead evidence to show the document is not a contract or was intended for another purpose.

  2. 02

    Christie The Law of Contract in South Africa, 5th ed, p171; Wilkens v Voges

    To establish a tacit term, conduct and circumstances must unequivocally show the parties were in agreement on the term, proven on a balance of probabilities.

  3. 03

    Alfred McAlpine & Sons (Pty) Ltd v Transvaal Provincial Administration 1974 (3) SA 506 (A)

    A court may imply a tacit term only if, upon reasonable and businesslike consideration of the contract and surrounding circumstances, such implication necessarily arises.

  4. 04

    Johnston v Leal 1980 (3) SA 927 (A)

    Essential terms of a contract must be set forth with sufficient accuracy and particularity to enable identification of parties, purchase price, subject matter, and material terms without recourse to oral evidence.

  5. 05

    Stellenbosch Farmers Winery Ltd v Stellenvale Winery (Pty) Ltd 1957 (4) SA 234; Plascon-Evans Paints Ltd v Van Riebeeck Paints (Pty) Ltd [1984] ZASCA 51; 1984 (3) SA 623 (A)

    Where disputes of fact arise on affidavits in motion proceedings, a final order may be granted only if the facts stated by the respondent, together with admitted facts, justify such order. Bona fide disputes of fact may require referral to oral evidence or trial.

06

Ratio, limits and disposition

Ratio decidendi

The court found that there are material disputes of fact regarding the intention and terms of the agreement between the parties, specifically whether the resignation and share transfer were unconditional and binding. The affidavits do not resolve these disputes, and the credibility of the parties' versions cannot be determined without oral evidence. The court declined to read a tacit term into the agreement on the papers and held that the matter cannot be decided on motion. Accordingly, the application is referred to trial, where the issues can be properly ventilated and determined on evidence.

Obiter and limits

  • It is not the function of the court to read tacit terms into an agreement where the facts and evidence do not unequivocally support such implication.
  • Where parties are not ad idem on the essential terms of a contract, the matter cannot be resolved on affidavit and must be referred to oral evidence or trial.

Court disposition

Application referred to trial; costs reserved for determination by the trial court.

  • The application is referred to trial.
  • The notice of motion shall serve as a simple summons.
  • The notice of intention to oppose shall serve as a notice of intention to defend.
  • The applicant shall deliver a declaration within 20 days of this order; thereafter, all rules applicable to actions shall apply.
  • Costs of the application are reserved for determination by the trial court.

Source and reliance status

High Courts - Gauteng

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Judgment reading view

Judgment text

The complete available source text.

Source document

High Courts - Gauteng

Judgment

[2007] ZAGPHC 38

IN

DIE HOOGGEREGSHOF VAN SUID AFRIKA

(TRANSVAALSE PROVINSIALE AFDELlNG)

In die saak tussen:

NIE

RAPPORTEERBAAR

Saak nommer: 15967/2006

Datum: 25/4/2007

VILJOEN, PETRUS JACOBUS ............................... 1 ste Applikant

PROLINE TRADING 82 (PTY) LTD ............................... 2de Applikant

en

RADEMEYER, ENRICO JOHAN ............................... 1ste Respondent

VAN DYK & HORN ATTORNEYS ............................... 2de Respondent

UITSPRAAK

PRETORIUS R.

Hierdie is 'n aansoek waar die volgende regshulp gevra word:

"1. Dit word bevind dat die eerste respondent op 13 April

2006 as 'n direkteur van die tweede applikant bedank het.

2. Die tweede respondent word gelas om die eerste

applikant se aandelesertifikaat in die tweede applikant

binne tien (10) dae na betekening van hierdie bevel op

die tweede respondent aan die eerste applikant te lewer.

3. Die eerste respondent word gelas om

sy aandelesertifikaat in die tweede applikant tesame met 'n ondertekende aandele-oordragvorm (CM

42), wat voorsiening maak vir die oordrag van gemelde aandele

aan die eerste applikant, binne tien (10) dae na

betekening van hierdie bevel op die eerste respondent

aan die eerste applikant te lewer.

4. Die respondente word gelas om die tweede applikant se

akte van oprigting en statute en enige ander dokumentasie

van die tweede applikante binne tien (10)

dae na betekening van hierdie bevel op die tweede

respondent aan die eerste applikant te lewer.

5. Indien die respondente sou weier of nalaat om enige van

die bevele in paragrawe 1,2,3 en 4 hierbo uit te voer of

ten volle uit te voer, word die Balju hiermee gemagtig en

gelas:

5.1 om die perseel van die tweede respondent te

deursoek en op enige dokument wat in paragrawe

1,2,3 en 4 hierbo vermeld word, in beslag te neem;

5.2 om enige inbeslaggenome dokumente te

verwyder;

5.3 om enige inbeslaggenome dokumente aan die

eerste applikante te lewer; en

5.4 om 'n aandele-oordragvorm (CM 42) vir die

oordrag van die eerste respondent se aandele in

die tweede applikant te voltooi en namens die

eerste respondent te onderteken en aan die eerste

applikant te lewer.

6. Die eerste respondent word gelas om die applikante se

koste van die aansoek te betaal. "

Hierdie aansoek word geopponeer deur die eerste respondent.

Die eerste respondent opper as hoofpunt in limine dat daar op die stukke 'n feite dispuut is wat die applikant moes voorsien het. Die eerste respondent beweer dat die applikant op grond daarvan 'n aksie moes ingestel het en versoek die hof om die aansoek van die hand te wys of om die aansoek vir verhoor te verwys.

Alhoewel die applikante toegee dat die beëdigde verklarings sekere feite dispute daarstel, dit nie werklike of bona fide feite dispute nie.

Indien die hof die eerste respondent gelyk gee sal dit nie nodig wees om met verdere punte in limine te handel nie.

Daar is ter aanvang beslis dat die aansoek in geheel geargumenteer moet

word ten einde die hof in staat te stel om die eerste punt in limine te beslis.

Die feite van die aansoek is dat dit 'n aansoek is vir spesifieke nakoming van 'n ooreenkoms. Die ooreenkoms lees as volg:

"12 April 2006 Hiermee verklaar ek Enrico Johan Rademeyer ek as direkteur van PROLINE TRADING 82 (Pty) Ltd. bedank.

Ek doen afstand van my 50'% aandeel in PROLINE TRADING 82 (Pty) Ltd. op die volgende voorwaardes:

Die volgende kostes finansieel deur my as uitgawe van die maatskappy aangegaan moet aan my terugbetaal word met ondertekening van finale toepaslike vorms deur prokureur Hanlie van Tonder:

R-\Vaarde

I. Salaris van bestuurder, P Viljoen

2. Onkostes van rakke

3. Prokureurskostes

4. Kontant deposito in die rekening van PROLINE TRADING 82 (Pty) Ltd

5. Administratiewe kostes aangegaan

Bedrag van R100 000,00

TOTAAL

terugkoop van die

Indien die ondergetekende waarborge kan lewer en borgskap kan verkry in die volgende 2 maande kan die moontlikheid ' n terugkoop in die maatskappy onderhandel word soos vir beide partye P J Viljoen en ondergetekende aanvaarbaar is.

50% aandeel plaasvind teen die bedrag soos genoem RI00 000.00 asook ondergenoemde punte.

GETEKEN TE Pretoria HIERDIE 13 April

ENRICO RADEMEYER

GETUIE DRUKSKRIF EN HANDTEKENING

1 2.

Die herregistrasie nie sal plaasvind voor die 2 maande verstryk het nie.

Die volgende fases in inkomste gefn deur die besigheid as volg aangewend salword­

5 (a) (b) (c)

Eerste fase - maak waarborge kontant

Fase twee - maak oortrokke fasilileit kontant

Fase drie - uitgawes aangegaan as /enings van direkteure word as kontant gemaak."

Dit is gemeensaak dat die eerste respondent op 13 April 2006 as direkteur van die tweede applikant bedank het. Die eerste respondent beweer dat hierdie bedanking plaasgevind het om mev Annerita Viljoen, eggenote van eerste applikant tevrede te stel, aangesien sy nie haar en eerste applikant se huis as sekuriteit wou stel as die eerste respondent steeds deel van die besigheid was nie.

Die eerste applikant wou nie die sogenaamde "franchise" verloor as gevolg van die feit dat die eerste applikant se vrou nie sekuriteite wou teken nie en daarom het die eerste respondent teruggetree.

Die verdere geskil tussen die eerste applikant en die eerste respondent is volgens die eerste respondent dat hierdie terugtrede in terme van sekere voorwaardes geskied het met betrekking tot die bestuur van die besigheid. Beide partye erken dat die ooreenkoms gesluit is, maar daar is geen ooreenstemming ten opsigte van die rede en voorwaardes waaronder die ooreenkoms gesluit is nie. Daar is geen ooreenkoms ten opsigte van die status van die ooreenkoms nie.

In Beaton v Baldachin Bros 1920 AD 312 op 315 het Innes HR bevind: ".. .the general rule is clear: a party to a written agreement cannot vary its terms by parol evidence. But a party to such a writing, which it is sought to use against him, may evidence to show that the document in question is not contract at all, that it was not intended by the signatories to operate as such, but was given another purpose. And when he had thus got rid of the writing, he may, if he can, establish another verbal contract as the true agreement. "

Verder beweer die eerste respondent dat hy en die eerste applikant nooit die nodige animus contrahendi het nie en dat die dokument nooit as 'n regsdokument wat bindend sou wees, opgestel is nie.

Mnr van Wyk het namens die applikante betoog dat die hof stilswyend bedinge moet bevind in die bogenoemde ooreenkoms en dat dit as volg moet lees:

"Ek doen afstand van my 50% aandeel in PROLINE TRADING 82 (Pty)

Ltd ten gunste van P J Viljoen deur aandele en leningsrekening in

gemelde maatskappy vir die ondergetekende bedrag van R100 000,00

en op die volgende voorwaardes aan hom te verkoop [...]"

Die gekursiveerde gedeelte is die stilswyende beding wat die hof moet inlees in die kontrak.

Christie The Law of Contract in South African 5de uitgawe op p171 verklaar:

"...it suggested that in order to establish an actual, as opposed to an

imputed, tacit term (the difference being explained in Wilkens v Voges

[...]), it is necessary to prove, by the preponderance of probabilities,

conduct and circumstances which are so unequivocal that the parties

must have been satisfied that they were in agreement on the tacit term.

If the court is satisfied on the preponderance of probabilities that the

parties reached agreement in that manner it may find the tacit term

established. "

In Alfred McAlpine & Sons (Pty) Ltd v Transvaal ProvincialAdministration 1974 (3) SA 506 (A) bevind Corbett WN A.R op 532 H-I en 533 A:

"Before it can imply a tacit term the Court must be satisfied, upon a

consideration in a reasonable and businesslike manner of the terms of

the contract and the admissible evidence of surrounding circumstances, that an implication necessarily arises that the parties intented to contract on the basis of the suggested term. "

Dit is nie hierdie hof se funksie om stilswyende bedinge in die ooreenkoms te bevind op die feite en getuienis daar te stel om die gewensde uitleg aan die ooreenkoms te gee nie.

In Johnston v Leal 1980 (3) SA 927(A) het die hof ten aansien van 'n koopooreenkoms by monde van Corbett AR op 938 B bevind: "Generally speaking these terms - and especially the essentialia – must be set forth with sufficient accuracy and particularity to enable the identity of the parties, the amount of the purchase price and the identity of the subject-matter of the contract, as also the force and effect of other material terms of the contract, to be ascertained without recourse to evidence of an oral consensus between the parties. "

Dit is gemeensaak dat daar wel 'n gesprek tussen die partye plaasgevind het

ten opsigte van die ooreenkoms, nadat mev Nel, die verhoudinge bestuurder van ABSA, met die eerste applikant en die respondent vergader het. Die inhoud van hierdie gesprek het skynbaar volgens beide partye aanleiding gegee daartoe dat eerste respondent die ooreenkoms geteken het. Hierdie gebeure kan egter nie getoets word indien daar nie mondelinge getuienis gelewer word nie, aangesien die applikante en respondente nie ad idem is omtrent die inhoud van die gesprek nie.

In Moosa Bros and Sons (Pty) Ltd v Rajah 1975 (4) 87 (D&CLD) het

Kumleben R bevind:

"To summarise my conclusions on the legal arguments raised:

(a) As a matter of interpretation, there is nothing in the language of

Rule 6 (5) (g) which restricts the discretionary power of the

Court to order the cross-examination of a deponent to cases in

which a dispute of fact is shown to exist.

(b) The illustrations of "genuine" disputes of fact given in the Room

Hire case at p. 1163 do not - and did not purport to - set out the

circumstances in which cross-examination under the relevant

Transvaal Rule of Court could be authorised. They a fortiori do

not determine the circumstances in which such relief should be

granted in terms of the present Rule 6 (5) (g).

(c) Without attempting to lay down any precise rule, which may

have the effect of limiting the wide discretion implicit in this Rule,

in my view oral evidence in one or other form envisaged by the

Rule should be allowed if there are reasonable grounds for

doubting the correctness of the allegations concerned,

(d) In reaching a decision in this regard, facts peculiarly within the

knowledge of an applicant, which for that reason cannot be

directly contradicted or refuted by the opposite party, are to be

carefully scrutinised. "

In Stellenbosch Farmers Winery Ltd v Stellenvale Winery (Pty) Ltd 1957 (4) SA 234 op 235 E-G Van Wyk J bevind:

"... where there is a dispute as to the facts a final interdict should

only be granted in notice of motion proceedings if the facts as

stated by the respondents together with the admitted facts in the

applicant's affidavits justify such an order... Where it is clear that

facts, though not formally admitted, cannot be denied, they must

be regarded as admitted. "

In Plascon-Evans Paints Ltd v Van Riebeeck Paints (Pty) Ltd [1984] ZASCA 51; 1984 (3) SA 623 (A) het Corbett AR bevind op 634 en 635:

"It seems to me, however, that this formulation of the general rule, and

particularly the second sentence thereof, requires some clarification

and, perhaps, qualification. It is correct that, where in proceedings on

notice of motion disputes of fact have arisen on the affidavits, a final

order, whether it be an interdict or some other form of relief, may be

granted if those facts averred in the applicant's affidavits which have

been admitted by the respondent, together with the facts alleged by the

respondent, justify such an order. The power of the Court to give such

final relief on the papers before it is, however, not confined to such a

situation. In certain instances the denial by respondent of a fact alleged

by the applicant may not be such as to raise a real, genuine or bona

fide dispute of fact (see in this regard Room Hire Co (Pty) Ltd v Jeppe

Street Mansions (Pty) Ltd 1949 (3) SA 1155 (T) at 1163 - 5; Da Mata v Otto NO 1972 (3) SA 858 (A) at 882D - H). If in such a case the

respondent has not availed himself of his right to apply for the

deponents concerned to be called for cross-examination under Rule 6

(5) (g) of the Uniform Rules of Court (cf Petersen v Cuthbert & Co Ltd

1945 AD 420 at ; Room Hire case supra at 1164) and the Court is

satisfied as to the inherent credibility of the applicant's factual

averment, it may proceed on the basis of the correctness thereof and

include this fact among those upon which it determines whether the

applicant is entitled to the final relief which he seeks... "

Hierdie hof kan nie in die lig van die getuienis ten opsigte van die omringende omstandighede wat die aangaan van die ooreenkoms betref, 'n bevinding maak op die stukke om te bepaal wat die status van die ooreenkoms is nie.

Nadat ek al die dokumente nagegaan het en die regsverteenwoordigers se argumente oorweeg het, is ek van oordeel dat die aansoek na verhoor verwys moet word.

Ek maak die volgende bevel:

1. Die aansoek word vir verhoor verwys;

2. Die kennisgewing van mosie sal dien as 'n enkelvoudige dagvaardiging

3. Die kennisgewing van voorneme om te opponeer sal dien as 'n kennisgewing van voorneme om te verdedig;

4. Die applikant sal 'n deklarasie binne 20 dae van hierdie bevel aflewer; Daarna sal alle hofreels ten opsigte van aksies van toepassing

5. wees;

6. Die koste van die aansoek word voorbehou om deur die verhoorhof bepaal te word.

Gehoor op: 19 April 2007

Vir die Applikant

Opdrag deur

Vir die Respondent

Datum van Uitspraak

Adv A M van Wyk

Wessels en Genote

Adv I M Bredenkamp

Van Dyk & Horn

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Beaton v Baldachin Bros 1920 AD 312

Case cited

Wilkens v Voges

Case cited

Alfred McAlpine & Sons (Pty) Ltd v Transvaal Provincial Administration 1974 (3) SA 506 (A)

Case cited

Johnston v Leal 1980 (3) SA 927 (A)

Case cited

Stellenbosch Farmers Winery Ltd v Stellenvale Winery (Pty) Ltd 1957 (4) SA 234

Case cited

Plascon-Evans Paints Ltd v Van Riebeeck Paints (Pty) Ltd [1984] ZASCA 51; 1984 (3) SA 623 (A)

Case cited

Moosa Bros and Sons (Pty) Ltd v Rajah 1975 (4) 87 (D&CLD)

Case cited

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