South Africa Case Law

Delfs v Kuehne & Nagel (PROP) Ltd. (159/89)

Delfs v Kuehne & Nagel (PROP) Ltd. (159/89) [1989] ZASCA 160 (28 November 1989)

Court

Supreme Court of Appeal

Case number

159/89

Judges

Botha, Vivier, Kumleben, Eksteen, F H Grosskopf

The court held that the tacit term pleaded by the appellant, which would have made the respondent responsible for ensuring compliance with all conditions of the Letter of Credit regardless of circumstances, could not be implied. Such a term would effectively make the respondent a guarantor, which was neither necessary for business efficacy nor reflective of the parties' common intention. The evidence showed that the failure to comply with the Letter of Credit was due to the appellant's inability to supply the correct number of animals, not any breach by the respondent. Even if the tacit term…

Source excerpt

• Implied Terms In Contract
• Tacit Terms
• Letter Of Credit
• Damages For Breach
• Business Efficacy Test