Spar Group Limited and Others v Twelve Gods Supermarket (Pty) Ltd and Others (1100/2022)
Spar Group Limited and Others v Twelve Gods Supermarket (Pty) Ltd and Others (1100/2022) [2025] ZASCA 7; 2025 (3) SA 137 (SCA) (30 January 2025)
The Supreme Court of Appeal held that the credit facilities agreement between SPAR and the Giannacopoulos Group constituted an ongoing contractual relationship, not a series of discrete offers. The discretion to vary credit terms under clause 5 was subject to the arbitrio boni viri standard, requiring SPAR to act reasonably, honestly, and for a legitimate purpose. The evidence showed that SPAR's reasons for altering the credit and drop shipment terms—alleged financial instability and compliance issues—were not substantiated and did not justify the changes. The timing and nature of the alterat…
Source excerpt
- Contractual Discretion
- Arbitrio Boni Viri
- Variation Of Contract
- Credit Facilities
- Good Faith
- Termination Of Membership