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South Africa Case Law

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Banking And Finance [2017] ZASCA 45

Factaprops 1052 CC and Another v Land and Agricultural Development Bank of South Africa t/a Land Bank (353/2016)

Factaprops 1052 CC and Another v Land and Agricultural Development Bank of South Africa t/a Land Bank (353/2016) [2017] ZASCA 45; 2017 (4) SA 495 (SCA) (30 March 2017)

The Supreme Court of Appeal held that the phrase 'mortgage bond' in section 11(a)(i) of the Prescription Act 68 of 1969 must be interpreted to include a special notarial bond. This conclusion is supported by the ordinary grammatical meaning of 'mortgage', the Afrikaans text of the Act, historical legislative usage, and the public record nature of notarial bonds. The distinction drawn in the Deeds Registries Act is relevant only for deeds attestation and registration, not for prescription purposes. Consequently, the applicable prescription period for a debt secured by a special notarial bond i…

  • Prescription Periods
  • Special Notarial Bond
  • Mortgage Bond Interpretation
  • Security By Means Of Movable Property Act
  • Suretyship Liability
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Land And Property [2007] ZAKZHC 9

Thekweni Properties (Proprietary) Limited v Picardi Hotels Limited and Others (5516/2000)

Thekweni Properties (Proprietary) Limited v Picardi Hotels Limited and Others (5516/2000) [2007] ZAKZHC 9; [2008] 1 All SA 172 (D); 2008 (2) SA 156 (D) (26 September 2007)

The court held that the cession clause in the mortgage bond constituted a cession in securitatem debiti, but the proviso requiring the bank's consent or a breach before acting on the cession suspended the operation of the transfer of rights. The plaintiff retained the right to collect and enforce payment of rentals until the suspensive condition was fulfilled. The parties' intention was not to deprive the plaintiff of its right to rental income during the currency of the bond. The amendment to the plea was allowed, as no irreparable prejudice was shown. The plaintiff was entitled to judgment…

  • Cession In Securitatem Debiti
  • Locus Standi
  • Mortgage Bond Interpretation
  • Arrear Rentals
  • Contractual Amendment
  • Business Efficacy
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