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South Africa decisions
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Mellet N O and Others v Vermeulen and Another (1049/2021) [2022] ZASCA 176 (7 December 2022)
The Supreme Court of Appeal held that the appellants failed to prove a trust inter vivos met the statutory requirements to hold a close corporation interest.
Leakgona Multimeddia (Pty) Ltd and Another v Fassie Records CC and Others (5220/18) [2019] ZAGPPHC 96 (22 March 2019)
The court found that the second joint venture agreement between the applicants and the executor of the deceased estate was invalid from the outset due to non-compliance with section 47 of the Administration of Estates Act, which requires written consent from the heir before an executor may dispose of estate assets. The executor failed to obtain such written consent from the third respondent, the sole heir. The applicants' argument that the agreement remained valid until set aside by a court was rejected, as the agreement was void ab initio for failure to comply with a peremptory statutory pro…
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Green Mile Investments 340 CC v Khuthala Property Consortium (Pty) Limited and Another (5188/2016P;5434/2017P;429/2016D) [2018] ZAKZPHC 16 (18 May 2018)
The court found that the notarial lease registered in favour of Khuthala Property Consortium (Pty) Limited was invalid. The municipal council had resolved to contract with Alliance Property Group, not Khuthala or Crowned Cormorant, and no proper authority existed for the lease registration. The Power of Attorney was signed prematurely and without the required mandate from the MEC or council approval. The process ignored statutory procurement requirements, including the oversight role of the MEC and the need for transparency and proper authorisation. The involvement of shelf companies and the…
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MEC: Department of Police, Roads and Transport, Free State Provincial Government v Terra Graphics (Pty) Ltd t/a Terra Works and Another, In re: Terra Graphics (Pty) Ltd t/a Terra Works and Another v MEC: Department of Police, Roads and Transport, Free State Provincial Government and Another (3489/2012) [2013] ZAFSHC 81 (23 May 2013)
The High Court granted leave to appeal in a dispute over privity of contract, procurement legality, and the validity of a sub-consultancy agreement.
Land & Landbou Ontwikkelingsbank van SA h/a Die Landbank v Van Der Merwe en 'n Ander (18328/02) [2007] ZAGPHC 143 (3 August 2007)
The court held that suretyships signed without spousal written consent were void because the first defendant was not acting in the ordinary course of his business.
Maartens v Kobus van Zyl Boerdery BK (1973/2006) [2007] ZAFSHC 106 (9 February 2007)
The court held that the plaintiff's particulars of claim do not disclose a valid cause of action. While the underlying contract is void due to statutory prohibition and common mistake regarding the lifelong right of residence, the plaintiff failed to allege that the real agreement (transfer of ownership) is also void. Under the abstract system of transfer, the invalidity of the contract does not affect the validity of the transfer of ownership unless specifically pleaded. Restitution and cancellation are not available remedies where the contract is void ab initio, as these presuppose a valid…
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New Republic Bank Limited v MEC for Sports, North-West Province (72/2004) [2006] ZANWHC 18 (2 March 2006)
The Department of Education, Sport and Recreation of the North West Province lacked legal authority to conclude the 13 master rental agreements for office equipment because section 4(1) of the North West Tender Board Act vests exclusive power in the tender board to arrange such contracts. The absence of the word 'sole' in the Act does not diminish the exclusivity of the tender board's powers. The Department did not receive any delegation of authority from the tender board. Consequently, the agreements were concluded ultra vires and are invalid. Estoppel and ostensible authority cannot validat…
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Theron v Blomerus en 'n Ander (33586/2004) [2005] ZAGPHC 255 (25 May 2005)
The court found that the property description in the agreement, namely the western half of Plot 53, Marjoran Street (1 hectare), is sufficiently certain to allow identification on the ground. The purchase price is certain, and the absence of specified payment terms defaults to payment on transfer, which is standard practice. The agreement is complete, and the parties' intention to be bound retroactively from 1 October 2000 is valid. Section 67 of Ordinance 15 of 1986 does not apply, as the sale did not concern an erf in a township but a portion of land. Therefore, the agreement is valid and e…
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Cussons and Others v Kroon (254/98) [2001] ZASCA 69; [2002] 1 All SA 361 (A); 2001 (4) SA 833 (SCA) (28 May 2001)
The Supreme Court of Appeal held that the farm was indeed a partnership asset, as evidenced by the written and oral agreements between the parties. The registration of the farm in the name of one partner was a matter of convenience and did not affect the underlying intention. Section 3(b) of the Subdivision of Agricultural Land Act 70 of 1970 did not render the agreement void, as the parties did not intend to transfer an undivided share in the land. The respondent had a personal right against the second appellant, requiring his consent for any sale of the farm. The doctrine of knowledge was a…
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Gray and Others v Thesing Vastgoed BV and Others (267/85/av) [1986] ZASCA 129; [1987] 1 All SA 409 (A) (21 November 1986)
The Appellate Division held that the share-sale and lease arrangement did not amount to prohibited financial assistance by the company under section 38(1).
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