Harbour Arch Investment Holdings (Pty) Ltd v Capital Propfund 4 (Pty) Ltd (437/2020)
Harbour Arch Investment Holdings (Pty) Ltd v Capital Propfund 4 (Pty) Ltd (437/2020) [2021] ZASCA 108 (5 August 2021)
The Supreme Court of Appeal held that the payment obligation under clause 18.3 of the leases assignment agreement did not survive the appellant's acquisition of ownership of the property. The Court found that the intention of the parties, as reflected in the agreement, was that the payment obligation was linked to the status of the appellant as sub-lessee under the land lease. Once the appellant became the owner, its rights and obligations as sub-lessee were extinguished by merger (confusio), and the development rights now flowed from ownership, not the lease. The respondent's argument that t…
Source excerpt
- Lease Assignment
- Merger Of Rights
- Contractual Interpretation
- Payment Obligation
- Confusio
- Development Rights