SA National Roads Agency SOC Limited v Fountain Civil Engineering (Pty) Ltd and Another (395/2020)
SA National Roads Agency SOC Limited v Fountain Civil Engineering (Pty) Ltd and Another (395/2020) [2021] ZASCA 118 (20 September 2021)
The Supreme Court of Appeal held that the High Court erred in granting an interdict restraining SANRAL from making a claim under the unconditional performance guarantee pending arbitration. The contract provided for mediation and litigation, not arbitration, and the High Court had no power to amend the contract by ordering arbitration. The performance guarantee was unconditional, and SANRAL was entitled to claim under it regardless of disputes under the contract. Clause 4.2 did not require SANRAL to prove entitlement before making a demand, and the indemnity provision protected FCE against wr…
Source excerpt
- Performance Guarantee
- Interdict
- Fidic Contract
- Termination Of Contract
- Dispute Resolution
- Force Majeure