W & A Le Roux Slaghuis (Pty) Ltd and Another v Van NIekerk (A554/17) [2019] ZAGPPHC 577; [2020] 1 All SA 902 (GP); 2020 (2) SA 624 (GP) (4 December 2019)

W & A Le Roux Slaghuis (Pty) Ltd and Another v Van NIekerk (A554/17) [2019] ZAGPPHC 577; [2020] 1 All SA 902 (GP); 2020 (2) SA 624 (GP) (4 December 2019)

The court held that the Second Appellant, as auctioneer, was jointly liable with the Seller to refund the deposit paid by the Respondent, as the auctioneer was a party to the agreement and had received the funds. The irrevocability clause in the agreement did not prevent the Respondent from withdrawing his offer, as the conduct of the Appellants in selling and removing parts of the property constituted repudiation of the option contract. The option agreement created rights and obligations before acceptance, and the duty to preserve the subject matter was breached. The Respondent was entitled to withdraw his offer and cancel the agreement due to the material alteration and damage to the...

Citation
[2019] ZAGPPHC 577
Parties
Appellant: W & A Le Roux Slaghuis (Pty) Ltd; Appellant: Van’s Auctioneers Gauteng CC; Respondent: CJL van Niekerk
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
4 December 2019
Case Number
A554/17
Procedural Posture
Civil Appeal / Appeal Against Judgment and Order of the Court a Quo
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
P.M. Mabuse, E.M. Kubushi, N. Janse van Nieuwenhuizen
Legal Topics
Auctioneer Liability, Repudiation of Contract, Irrevocable Offer, Option Contract, Damages for Breach, Agency Principle
Commercial and Corporate Land and Property Civil Procedure Auctioneer Liability Repudiation of Contract Irrevocable Offer Option Contract Damages for Breach +1 more

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Parties

W & A Le Roux Slaghuis (Pty) Ltd

Appellant

Van’s Auctioneers Gauteng CC

Appellant

CJL van Niekerk

Respondent

Procedural Posture

Civil Appeal / Appeal Against Judgment and Order of the Court a Quo

Legal Issues

  1. 1 Whether an auctioneer acting as agent can be held personally liable for obligations of the principal.
  2. 2 Whether a party who makes an irrevocable offer may withdraw the offer while it is still open for acceptance.
  3. 3 Whether an agreement can be repudiated before it comes into existence.

Ratio Decidendi

The court held that the Second Appellant, as auctioneer, was jointly liable with the Seller to refund the deposit paid by the Respondent, as the auctioneer was a party to the agreement and had received the funds. The irrevocability clause in the agreement did not prevent the Respondent from withdrawing his offer, as the conduct of the Appellants in selling and removing parts of the property constituted repudiation of the option contract. The option agreement created rights and obligations before acceptance, and the duty to preserve the subject matter was breached. The Respondent was entitled to withdraw his offer and cancel the agreement due to the material alteration and damage to the...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs consequent upon the employment of two counsel.