South Africa Case Law

McAlpine v McApline NO and Another (299/95)

McAlpine v McApline NO and Another (299/95) [1996] ZASCA 127; 1997 (1) SA 736 (SCA); [1997] 1 All SA 264 (A); (12 November 1996)

Court

Supreme Court of Appeal

Case number

299/95

Judges

Corbett, Nienaber, Howie, Olivier, Scott

The majority held that the agreements between the brothers constituted a classic form of pactum successorium, as they provided for the reciprocal transfer of shares in the company upon the death of either party, contingent on survivorship. Applying the vesting test, the court found that the right to the shares did not vest inter vivos but only upon the death of the first-dying, making the disposition mortis causa. The agreements thus fettered the freedom of testation and circumvented testamentary formalities, rendering them invalid under South African law. The court dismissed the appeal, upho…

Source excerpt

• Pactum Successorium
• Share Transfer On Death
• Succession In Commercial Context
• Vesting Test
• Freedom Of Testation