South Africa Case Law

Hippo Quarries (Transvaal) (Pty) Ltd. v Eardley (189/90)

Hippo Quarries (Transvaal) (Pty) Ltd. v Eardley (189/90) [1991] ZASCA 174; 1992 (1) SA 867 (AD); [1992] 1 All SA 398 (A) (28 November 1991)

Court

Supreme Court of Appeal

Case number

189/90

Judges

Joubert, Mestadt, Nienaber, Preiss, Krieger

The court held that the cession was genuine and not a sham. The intention of the parties was to transfer Hippo's claim against Rietfontein to the plaintiff, thereby enabling the plaintiff to enforce the suretyship executed by the defendant in its favour. The fact that the plaintiff was a dormant company, that no consideration passed, and that the proceeds would ultimately be credited to Hippo did not render the transaction simulated or illegitimate. The arrangement was a legitimate means to a legitimate end, and there was no evidence of dishonesty or an attempt to circumvent the law. The evid…

Source excerpt

• Cession
• Suretyship
• Simulation
• Mandate Vs Cession
• Burden Of Proof