Fedsure Participation Mortage Bond Managers (Pty) Ltd and Another v Sandlundlu (Pty) Ltd (AR409/12)
Fedsure Participation Mortage Bond Managers (Pty) Ltd and Another v Sandlundlu (Pty) Ltd (AR409/12) [2013] ZAKZPHC 54 (18 October 2013)
The court held that Clause 8 of the mortgage bond required a demand before legal costs could be debited to Sandlundlu's account, and no such demand was made. The monthly payments made by Sandlundlu were intended to discharge its interest obligations under the mortgage bond and should have been credited to the bond account, not held in trust. The judgment of 5 August 2002 novated the underlying contractual rights, restricting Fedbond to simple interest at the rate ordered by the court and precluding variation or compounding of interest. The appeal on all grounds failed, and the quantum was ame…
Source excerpt
- Mortgage Bond Liability
- Compound Vs Simple Interest
- Demand For Legal Costs
- Novation Of Contract
- Interest Rate Variation