South Africa Case Law

Abeinsa EPC Kaxu (Pty) Ltd v Kaxu Solar One (RF) (Pty) Ltd and Another (1791/2022)

Abeinsa EPC Kaxu (Pty) Ltd v Kaxu Solar One (RF) (Pty) Ltd and Another (1791/2022) [2023] ZANCHC 12 (13 January 2023)

Court

Northern Cape High Court, Kimberley

Case number

1791/2022

Judge

Mamosebo

The court found that the performance bond is a demand guarantee, autonomous from the EPC contract. The only requirement for payment under the bond is a bona fide demand stating the contractor’s breach; disputes regarding defects or the need for technical intervention do not restrict Kaxu’s right to call on the bond. Clause 29.9F does not impose a requirement that a defect be established by arbitration before the bond can be called. The applicant failed to establish a clear right to the relief sought, did not substantiate irreparable harm, and did not show the absence of an alternative remedy.…

Source excerpt

• Performance Guarantees
• Interim Interdict
• Contractual Interpretation
• Demand Bond
• Underlying Contract Exception