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South Africa Case Law

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Commercial And Corporate [2024] ZAGPJHC 115

Innova Turnkey (Pty) Ltd and Others v Hollard Insurance Company Limited and Another (2023-134395)

Innova Turnkey (Pty) Ltd and Others v Hollard Insurance Company Limited and Another (2023-134395) [2024] ZAGPJHC 115 (9 February 2024)

Court
South Gauteng High Court, Johannesburg
Case number
2023-134395
Judge
D Dosio

The court held that the applicants failed to establish a prima facie right to an interim interdict restraining payment under the on-demand guarantees. The guarantees are autonomous and must be honoured strictly according to their terms, irrespective of disputes under the underlying contract. The only recognised exception is fraud, which was not alleged or proven by the applicants. Disputes regarding certification, termination, or calculation of amounts are matters for arbitration and do not justify interference with the guarantor's obligation to pay. The applicants have alternative remedies a…

Source excerpt

  • On Demand Guarantees
  • Interim Interdict
  • Autonomy Principle
  • Fraud Exception
  • Arbitration Clauses
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Commercial And Corporate [2020] ZAGPJHC 403

Buffalo City Metropolitan Municipality v Fusion Guarantees (Pty) Ltd (8731/2020)

Buffalo City Metropolitan Municipality v Fusion Guarantees (Pty) Ltd (8731/2020) [2020] ZAGPJHC 403 (24 November 2020)

Court
South Gauteng High Court, Johannesburg
Case number
8731/2020
Judge
Twala M L

The court held that the applicant's claim under the performance guarantee was valid and enforceable. The guarantee is autonomous and independent of the underlying building contract, and the respondent's obligation to pay arises upon compliance with the guarantee's conditions. The only defence available to the respondent was fraud, which was not established on the facts. The respondent failed to prove that the applicant knowingly misrepresented material facts when making the demand. Disputes between the applicant and the contractor regarding payments and outstanding works were irrelevant to th…

Source excerpt

  • Performance Guarantee
  • Autonomy Principle
  • Fraud Exception
  • Building Contracts
  • Costs Award
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About this LexChat collection

South Africa decisions are organised by court, judge, legal area and indexed issue so a practitioner can move from a proposition to a citable authority with the surrounding context intact.

Source links and collection timestamps are retained alongside the indexed records.