Westside Trading 78 (Pty) Ltd v MEC for the Province of Eastern Cape Responsible for Human Settlement (2814/2011) [2012] ZAECPEHC 89 (6 December 2012)

Westside Trading 78 (Pty) Ltd v MEC for the Province of Eastern Cape Responsible for Human Settlement (2814/2011) [2012] ZAECPEHC 89 (6 December 2012)

The court found that the plaintiff failed to establish the existence of binding oral agreements for the construction of 850 dwellings or for the second phase of 490 homes. The evidence adduced, including minutes, resolutions, and correspondence, merely identified the plaintiff as the preferred contractor and explicitly stated that a binding contract was dependent on the conclusion of a written agreement. The only written agreement concluded was for the first phase (360 homes), which was performed by both parties. The plaintiff's sole witness, Mr Thomas, could not provide sufficient evidence to support the existence of the alleged oral agreements, and his belief that departmental officials...

Citation
[2012] ZAECPEHC 89
Parties
Plaintiff: Westside Trading 78 (Pty) Ltd; Defendant: The Member of the Executive Council of the Province of the Eastern Cape Responsible for Human Settlement
Court
Eastern Cape High Court, Port Elizabeth
Jurisdiction
South Africa
Judgment Date
6 December 2012
Case Number
2814/2011
Procedural Posture
Civil Trial / Absolution From the Instance at Close of Plaintiff's Case
Outcome
Absolution from the instance granted in favour of the defendant, with costs.
Judges
Chetty
Legal Topics
Oral Contracts, Absolution From the Instance, Housing Development Agreements, Authority to Contract
Commercial and Corporate Civil Procedure Oral Contracts Absolution From the Instance Housing Development Agreements Authority to Contract

Case Brief

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Parties

Westside Trading 78 (Pty) Ltd

Plaintiff

The Member of the Executive Council of the Province of the Eastern Cape Responsible for Human Settlement

Defendant

Procedural Posture

Civil Trial / Absolution From the Instance at Close of Plaintiff's Case

Legal Issues

  1. 1 Whether an oral agreement was concluded between the parties for the construction of 850 dwellings and services.
  2. 2 Whether the oral agreement was subsequently varied into a two-phased project for 360 and 490 homes.
  3. 3 Whether there was sufficient evidence to establish the existence of binding oral agreements for the second phase of the project.

Ratio Decidendi

The court found that the plaintiff failed to establish the existence of binding oral agreements for the construction of 850 dwellings or for the second phase of 490 homes. The evidence adduced, including minutes, resolutions, and correspondence, merely identified the plaintiff as the preferred contractor and explicitly stated that a binding contract was dependent on the conclusion of a written agreement. The only written agreement concluded was for the first phase (360 homes), which was performed by both parties. The plaintiff's sole witness, Mr Thomas, could not provide sufficient evidence to support the existence of the alleged oral agreements, and his belief that departmental officials...

Court Disposition

Absolution from the instance granted in favour of the defendant, with costs.

Orders

  • The defendant is granted absolution from the instance.
  • The plaintiff is ordered to pay the costs of the action.