Boland Bank Ltd. v Pienaar and Another (356/86)
Boland Bank Ltd. v Pienaar and Another (356/86) [1988] ZASCA 50; [1988] 2 All SA 467 (A) (19 May 1988)
The Supreme Court of Appeal held that the principle established in Schuurman v Davey and subsequent authorities applies to foreclosure clauses in mortgage bonds. Upon default by the mortgagor, the mortgagee acquires a right to foreclose, which is not defeated by a late tender of payment by the debtor or a third party prior to the exercise of the election to foreclose. The court found no material distinction between a lex commissoria in a contract of sale and a foreclosure clause in a bond for this purpose. The appellant was entitled to rely on the foreclosure clause and refuse the tender, and…
Source excerpt
- Foreclosure Clause
- Lex Commissoria
- Mora Creditoris
- Tender Of Payment