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South Africa Case Law

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Commercial And Corporate [2023] ZANCHC 12

Abeinsa EPC Kaxu (Pty) Ltd v Kaxu Solar One (RF) (Pty) Ltd and Another (1791/2022)

Abeinsa EPC Kaxu (Pty) Ltd v Kaxu Solar One (RF) (Pty) Ltd and Another (1791/2022) [2023] ZANCHC 12 (13 January 2023)

Court
Northern Cape High Court, Kimberley
Case number
1791/2022
Judge
Mamosebo

The court found that the performance bond is a demand guarantee, autonomous from the EPC contract. The only requirement for payment under the bond is a bona fide demand stating the contractor’s breach; disputes regarding defects or the need for technical intervention do not restrict Kaxu’s right to call on the bond. Clause 29.9F does not impose a requirement that a defect be established by arbitration before the bond can be called. The applicant failed to establish a clear right to the relief sought, did not substantiate irreparable harm, and did not show the absence of an alternative remedy.…

Source excerpt

  • Performance Guarantees
  • Interim Interdict
  • Contractual Interpretation
  • Demand Bond
  • Underlying Contract Exception
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Commercial And Corporate [2012] ZAGPJHC 182

East London Own Haven t/a Own Haven Housing Association v Coface South Africa Insurance Co Ltd (2009/12141)

East London Own Haven t/a Own Haven Housing Association v Coface South Africa Insurance Co Ltd (2009/12141) [2012] ZAGPJHC 182 (13 September 2012)

Court
South Gauteng High Court, Johannesburg
Case number
2009/12141
Judge
C.G. Lamont

The court held that the defendant's proposed amendment did not establish that the interim certificate constituted a final determination of the plaintiff's entitlement to damages under the construction guarantee. The contract contemplated further steps and certification after cancellation, and the interim certificate was subject to variation. The guarantee was a demand bond, enforceable upon proper demand and presentation of required documents, and extraneous defences were impermissible except in cases of fraud. The facts did not incontrovertibly show that running the trial would be academic o…

Source excerpt

  • Construction Guarantee
  • Demand Bond
  • Amendment Of Pleadings
  • Liquid Document
  • Interim Certificate
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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.