ABSA Bank Limited v Rosenburg and Another (1255/2022)
ABSA Bank Limited v Rosenburg and Another (1255/2022) [2024] ZASCA 58 (24 April 2024)
The Supreme Court of Appeal held that the guarantee agreement was not enforceable against the respondents because ABSA Bank failed to perform its reciprocal obligation to increase the credit facility as contemplated in the agreement. The court found that the guarantee was provided as a condition precedent for the contemplated increase in the facility, and the respondents' liability as guarantors would only arise once ABSA Bank had implemented the increased facility. The principle of reciprocity applied, and the respondents were entitled to raise the exceptio non adempleti contractus as a defe…
Source excerpt
- Guarantee Agreement
- Contractual Interpretation
- Exceptio Non Adempleti Contractus
- Reciprocity Of Obligations
- Enforceability Of Guarantees