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South Africa Case Law

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Commercial And Corporate [2011] ZANCHC 35

Land and Agricultural Development Bank of South Africa v Du Preez and Others (1373/04)

Land and Agricultural Development Bank of South Africa v Du Preez and Others (1373/04) [2011] ZANCHC 35 (25 November 2011)

The court found that the suretyship agreements were void due to impossibility of performance. The Land Bank, as creditor, was unable to cede its rights or security to the sureties because the relevant statutory provisions conferring such rights were declared unconstitutional and invalid before the liquidation of Grapex. The inability to cede the claim or security rendered performance under the suretyship agreements impossible, thereby releasing the defendants from their obligations as sureties. The court also held that the amendment to the plea introducing this defence raised a serious triabl…

  • Suretyship
  • Impossibility Of Performance
  • Cession Of Actions
  • Statutory Security
  • Amendment Of Pleadings
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Commercial And Corporate [1996] ZASCA 3

Barlows Tractor Company (Pty) Ltd. v Townsend (727/93)

Barlows Tractor Company (Pty) Ltd. v Townsend (727/93) [1996] ZASCA 3; 1996 (2) SA 869 (SCA); [1996] 2 All SA 105 (A); (23 February 1996)

The Supreme Court of Appeal held that Barlows's withdrawal of its claim from proof did not amount to abandonment and did not result in the loss of its security as a creditor. The statutory framework permits a creditor to withdraw a claim from proof and subsequently institute legal proceedings to enforce the claim. Upon obtaining judgment, section 78(3) of the Insolvency Act deems the claim to have been proved and admitted against the estate, provided proof was tendered at a meeting of creditors, which Barlows had done. The court found that the relevant statutory provisions do not require reje…

  • Suretyship
  • Liquidation Procedure
  • Secured Creditor Rights
  • Proof Of Claim
  • Cession Of Actions
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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.