South Africa Case Law

Tower Property Fund (Pty) Ltd v Liguria Ristorante (Pty) Limited (Reasons) (2025/004067)

Tower Property Fund (Pty) Ltd v Liguria Ristorante (Pty) Limited (Reasons) (2025/004067) [2025] ZAWCHC 101 (10 March 2025)

Court

Western Cape High Court, Cape Town

Case number

2025/004067

Judge

N Mangcu-Lockwood

The court found that the lease agreement between the parties expired on 30 April 2024 and no renewal agreement was concluded prior to expiry. The renewal clause (clause 37.1) amounted to an agreement to agree, lacking a deadlock-breaking mechanism or consensus on material terms such as rental. South African law, as confirmed by the Supreme Court of Appeal, does not enforce agreements to agree in the absence of a deadlock-breaking mechanism. The respondent's continued occupation was on a month-to-month basis, and the applicant was entitled to terminate and seek eviction. The urgency was justif…

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• Eviction Of Commercial Tenant
• Lease Renewal Option
• Agreement To Agree
• Urgent Application
• Deadlock Breaking Mechanism

Seale and Others v Minister of Public Works and Others (899/2019)

Seale and Others v Minister of Public Works and Others (899/2019) [2020] ZASCA 130 (15 October 2020)

Court

Supreme Court of Appeal

Case number

899/2019

Judges

Ponnan, Zondi, Dambuza, Van der Merwe, Weiner

Clause K and the notarial contract did not create enforceable rights to registration of praedial servitudes, as they failed to identify a dominant tenement and amounted to an unenforceable agreement to agree, lacking a deadlock-breaking mechanism. The title deed provisions merely echoed the unenforceable clause K. The evidence did not establish acquisitive prescription, as there was insufficient proof of continuous use of the foreshore as if of right for 30 years prior to 1971. The second appellant, Ontspan Beleggings, is clothed with a registered praedial servitude of access to the Dam over…

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• Servitude Registration
• Acquisitive Prescription
• Agreement To Agree
• Deadlock Breaking Mechanism
• Praedial Servitude
• Title Deed Interpretation

Friedshelf 1612 (Pty) Ltd v McConnell (2343/2018)

Friedshelf 1612 (Pty) Ltd v McConnell (2343/2018) [2018] ZAECGHC 119 (20 November 2018)

Court

Eastern Cape High Court, Grahamstown

Case number

2343/2018

Judge

J.D. Pickering

The court held that the lease agreement granted the respondent a right to renew, but this right was contingent on the parties reaching agreement on the rental before the cut-off date. No agreement was reached, and the lease contained no deadlock-breaking mechanism to resolve the impasse. The applicant was not obliged to negotiate in good faith or propose a rental in the absence of such a mechanism. The respondent's attempt to renew the lease by proposing an 8% escalation did not satisfy the contractual requirements, as the agreement expressly required consensus on the rental. The authorities…

Source excerpt

• Commercial Lease Renewal
• Option To Renew
• Deadlock Breaking Mechanism
• Contractual Interpretation

Member of the Executive Council for Development Planning and Local Government, Gauteng v Democratic Party and Others (CCT33/97)

Member of the Executive Council for Development Planning and Local Government, Gauteng v Democratic Party and Others (CCT33/97) [1998] ZACC 9; 1998 (4) SA 1157; 1998 (7) BCLR 855 (29 May 1998)

Court

Constitutional Court

Case number

CCT33/97

Judges

Chaskalson, Yacoob, Langa, Ackermann, Goldstone, Kriegler, Madala, Mokgoro, O'Regan, Sachs

The Constitutional Court held that section 16(5) of the LGTA remained valid during the constitutional transition and dismissed the appeal with costs.

• Local Government Transition
• Majority Vote Requirement
• Constitutional Supremacy
• Transitional Provisions
• Deadlock Breaking Mechanism
• Constitutional-law