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South Africa decisions
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Harrison v Gonkgang and Another [2023] ZAGPPHC 439; 447/2021 (14 June 2023)
High Court dismissed an opposed provisional sequestration application, finding the applicant had not shown insolvency on a prima facie basis.
Odendal and Another v Structured Mezzanine Investments (Pty) Ltd (482/13) [2014] ZASCA 89 (30 May 2014)
The Supreme Court of Appeal upheld a suretyship securing a trust’s loan, holding that the principal debt was sufficiently identified and validly incorporated by reference.
Edan Vehicle And Asset Finance (Pty) Ltd v Orthosmart (Pty) Ltd and Another (47986/2012) [2014] ZAGPPHC 291 (19 March 2014)
The court found that, applying the principles from the relevant authorities, the suretyship agreement in question, although not expressly naming the principal debtor in the relevant paragraph, sufficiently identifies the principal debtor and the underlying rental agreement by reference to the agreement number and particulars. The essential terms of the suretyship are ascertainable from the document and supporting evidence, and the second defendant did not dispute signing the document or receiving an explanation of its contents. The court held that extrinsic evidence may be used to clarify ide…
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Inventive Labour Structuring (Pty) Ltd. v Corfe (31/2005) [2005] ZASCA 139; 2006 (3) SA 107 (SCA) (18 November 2005)
The court held that the deed of suretyship, on its face, identified the creditor, principal debtor, and surety, albeit with the same name for both debtor and surety. The contract was capable of two interpretations: either the surety and principal debtor were the same person, which would render the contract invalid, or they were two distinct parties with identical names, which would render the contract valid. The court preferred the latter interpretation to avoid invalidity. Since the formal requirements were met, and the parties' common intention was not reflected due to a mistake, rectificat…
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