Wonderhoek Farms (Edms) Bpk v Burgess en Anders (556/2011) [2011] ZAFSHC 67 (24 March 2011)

Wonderhoek Farms (Edms) Bpk v Burgess en Anders (556/2011) [2011] ZAFSHC 67 (24 March 2011)

The court found that all conditions for transfer of the property had been met by July 2010, and that the option agreement did not specify a time for exercise. Applying established principles, the court held that a reasonable time for exercise had expired by the time the applicant's attorneys sent their letter on 15...

Source-derived case information.

Citation
[2011] ZAFSHC 67
Parties
Applicant: Wonderhoek Farms (Edms) Beperk; Respondent: Michael George Burgess; Respondent: Chantel Elizabeth Dunbar Burgess; Respondent: Rhys George Burgess; Respondent: George Philip Barnett
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Case Number
556/2011
Procedural Posture
Urgent Application / Application for Declaratory and Eviction Orders
Outcome
Application granted. Declaratory order issued that the option agreement has lapsed. Respondents ordered to vacate the property and pay costs.
Judges
S.P.B. Hancke, R
Legal Topics
Option Contracts, Eviction, Reasonable Time Performance, Counter Offer, Declaratory Relief
Land and Property Civil Procedure Option Contracts Eviction Reasonable Time Performance Counter Offer Declaratory Relief

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Parties

Wonderhoek Farms (Edms) Beperk

Applicant

Michael George Burgess

Respondent

Chantel Elizabeth Dunbar Burgess

Respondent

Rhys George Burgess

Respondent

George Philip Barnett

Respondent

Procedural Posture

Urgent Application / Application for Declaratory and Eviction Orders

  1. 1 Whether the third respondent validly exercised the option agreement for the purchase of the property.
  2. 2 Whether a reasonable period for exercising the option had expired, resulting in the lapse of the option.
  3. 3 Whether the respondents have any legal justification for continued occupation of the property.

Ratio Decidendi

The court found that all conditions for transfer of the property had been met by July 2010, and that the option agreement did not specify a time for exercise. Applying established principles, the court held that a reasonable time for exercise had expired by the time the applicant's attorneys sent their letter on 15 November 2010. The first notification from the third respondent was a counter-offer, not a valid exercise of the option, and was not accepted by the applicant. Even if the second notification was considered, the reasonable period had already expired. Consequently, the option agreement had lapsed, and the respondents had no legal justification for continued occupation of the...

Court Disposition

Application granted. Declaratory order issued that the option agreement has lapsed. Respondents ordered to vacate the property and pay costs.

Orders

  • A declaratory order is issued that a reasonable period has expired and the option agreement has lapsed.
  • The respondents are ordered to vacate the property described in Part A Prayer 1 on or before 30 April 2011.