Group Five Construction (Pty) Limited and others v Member of the Executive Council for Public Transport Roads And Works Gauteng and Others (2009/31971)
Group Five Construction (Pty) Limited and others v Member of the Executive Council for Public Transport Roads And Works Gauteng and Others (2009/31971) [2015] ZAGPJHC 55; [2015] 2 All SA 716 (GJ) ; 2015 (5) SA 26 (GJ) (13 February 2015)
The court found that the second demand did not comply with the guarantee's requirements, as no written notice of cancellation was attached and the summons did not constitute such notice. The guarantee required a clear, unequivocal written notice of cancellation due to contractor default, which was absent. The evidence showed that the contract had not been cancelled for default but had merely expired, and contemporaneous documents confirmed this. The demand was therefore fraudulent, as it misrepresented the grounds for cancellation. The guarantee was held to be extinguished and unenforceable,…
Source excerpt
- Performance Guarantee
- Fraud In Demand Guarantee
- Strict Compliance
- Construction Contracts
- Notice Of Cancellation