VRM Boerdery CC and Another v Van Zyl (3554/2013) [2014] ZAECGHC 46 (28 May 2014)

VRM Boerdery CC and Another v Van Zyl (3554/2013) [2014] ZAECGHC 46 (28 May 2014)

The court found that the oral agreement for the transfer of the farm Harmonie constituted an initial contribution to the close corporation, which, under section 24(4) of the Close Corporations Act, had to be transferred within 90 days of registration. The agreement was not in writing and did not comply with section 2(1) of the Alienation of Land Act, rendering it void and unenforceable. The second plaintiff lacked locus standi in her personal capacity to enforce the obligation. The particulars of claim did not disclose a cause of action, as no enforceable right existed in respect of the farm Harmonie, either personally or on behalf of the close corporation. The exception was upheld and...

Citation
[2014] ZAECGHC 46
Parties
Plaintiff: VRM Boerdery CC; Plaintiff: Magrieta Isabella van Rensburg; Defendant: Andre van Zyl
Court
Eastern Cape High Court, Grahamstown
Jurisdiction
South Africa
Judgment Date
28 May 2014
Case Number
3554/2013
Procedural Posture
Civil Procedure / Exception to Particulars of Claim
Outcome
Exception upheld; claim dismissed with costs.
Judges
R.W.N. Brooks
Legal Topics
Close Corporations Act, Alienation of Land Act, Locus Standi, Initial Contribution, Oral Agreement, Void Contract
Commercial and Corporate Land and Property Close Corporations Act Alienation of Land Act Locus Standi Initial Contribution Oral Agreement Void Contract

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Parties

VRM Boerdery CC

Plaintiff

Magrieta Isabella van Rensburg

Plaintiff

Andre van Zyl

Defendant

Procedural Posture

Civil Procedure / Exception to Particulars of Claim

Legal Issues

  1. 1 Whether the second plaintiff has locus standi to institute proceedings in her personal capacity.
  2. 2 Whether the particulars of claim disclose a cause of action for the transfer of immovable property based on oral agreements.
  3. 3 Whether the oral agreement for transfer of land complies with statutory formalities under the Alienation of Land Act and Close Corporations Act.

Ratio Decidendi

The court found that the oral agreement for the transfer of the farm Harmonie constituted an initial contribution to the close corporation, which, under section 24(4) of the Close Corporations Act, had to be transferred within 90 days of registration. The agreement was not in writing and did not comply with section 2(1) of the Alienation of Land Act, rendering it void and unenforceable. The second plaintiff lacked locus standi in her personal capacity to enforce the obligation. The particulars of claim did not disclose a cause of action, as no enforceable right existed in respect of the farm Harmonie, either personally or on behalf of the close corporation. The exception was upheld and...

Court Disposition

Exception upheld; claim dismissed with costs.

Orders

  • The exception is upheld with costs, such costs to include the travelling and accommodation costs of counsel and to be paid by first plaintiff and second plaintiff jointly and severally, the one paying the other to be absolved.