South Africa Case Law

Affinity Logic (Pty) Ltd and Others v Fourie NO and Others (26609/2003)

Affinity Logic (Pty) Ltd and Others v Fourie NO and Others (26609/2003) [2005] ZAGPHC 261 (2 June 2005)

Court

High Courts - Gauteng

Case number

26609/2003

Judge

S J Mynhardt

The court held that clause 20 of the agreement does not constitute an enforceable pre-estimate of damages nor a penalty clause under the Conventional Penalties Act. The clause merely accelerates payment of service fees upon certain events, but does not extinguish the reciprocal obligations under the executory contract. Upon liquidation and repudiation by the liquidators, the plaintiff cannot enforce accelerated payment of future instalments, but is limited to a concurrent claim for damages proven in the ordinary manner. The clause's attempt to bind liquidators and circumvent the concursus cre…

Source excerpt

• Acceleration Clause
• Executory Contracts
• Liquidation And Concursus Creditorum
• Pre Estimate Of Damages
• Public Policy
• Conventional Penalties Act