Vlok v Silver Crest Trading 154 (Pty) Ltd and Others (A65/2014) [2015] ZAFSHC 82 (23 April 2015)

Vlok v Silver Crest Trading 154 (Pty) Ltd and Others (A65/2014) [2015] ZAFSHC 82 (23 April 2015)

The court found that the appellant, after learning of the bank's refusal to honour the guarantee, elected to uphold the sale agreement by entering into an addendum, opposing Engen's application for retransfer, and demanding payment. This conduct constituted an unequivocal election to maintain the contract, thereby...

Source-derived case information.

Citation
[2015] ZAFSHC 82
Parties
Appellant: Jacques Vlok; Respondent: Silver Crest Trading 154 (Pty) Ltd; Respondent: Mercantile Bank Ltd; Respondent: Engen Petroleum Ltd; Respondent: Registrar of Deeds
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Case Number
A65/2014
Procedural Posture
Civil Appeal / Appeal From the High Court (a Quo) After Unsuccessful Application; Appellant Seeks Reversal of Orders Refusing Transfer of Property and Related Declaratory Relief.
Outcome
Appeal dismissed with costs.
Judges
Jordaan, R, Moloi, R, Daffue, R
Legal Topics
Specific Performance, Contract Cancellation, Transfer of Property, Company Law Compliance, Repudiation, Mora Ex Persona
Land and Property Civil Procedure Specific Performance Contract Cancellation Transfer of Property Company Law Compliance Repudiation Mora Ex Persona

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Parties

Jacques Vlok

Appellant

Silver Crest Trading 154 (Pty) Ltd

Respondent

Mercantile Bank Ltd

Respondent

Engen Petroleum Ltd

Respondent

Registrar of Deeds

Respondent

Procedural Posture

Civil Appeal / Appeal From the High Court (a Quo) After Unsuccessful Application; Appellant Seeks Reversal of Orders Refusing Transfer of Property and Related Declaratory Relief.

  1. 1 Whether the appellant validly cancelled the original sale agreement for the property.
  2. 2 Whether the appellant is entitled to restitution or transfer of the property based on cancellation or alternative grounds.
  3. 3 Whether the subsequent 'buy-back' agreement was valid and enforceable.

Ratio Decidendi

The court found that the appellant, after learning of the bank's refusal to honour the guarantee, elected to uphold the sale agreement by entering into an addendum, opposing Engen's application for retransfer, and demanding payment. This conduct constituted an unequivocal election to maintain the contract, thereby abandoning any right to cancel for the original breach. The appellant's subsequent attempts to cancel were ineffective, as he failed to place the first respondent in mora ex persona with a clear and unequivocal notice of cancellation. The buy-back agreement was conceded to be invalid due to non-compliance with company law. The new causes of action raised in reply, including...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.