5 Famous breach of contract cases in South Africa

 

 

Here are 5 famous breach of contract cases in South Africa:

 

1. Minister of Justice and Correctional Services v Van der Merwe [2006] ZASCA 110 (SCA):

 

This case involved a dispute over early retirement. Mr. Van der Merwe, a public service employee, entered into an agreement with the government for early retirement with specific financial benefits. However, the government later reneged on the agreement. The Supreme Court of Appeal (SCA) found in favor of Van der Merwe, upholding the principle of sanctity of contracts. The case highlighted the binding nature of contracts entered into by the government and its employees.

 

 

2. Williams v Edgars Stores Ltd [1972] (1) SA 808 (A):

 

This landmark case established the concept of “estoppel by representation”* in South African contract law. Ms. Williams purchased a fur coat from Edgars on lay-by, with an agreement to pay installments. However, Edgars repossessed the coat after she missed a payment due to a misunderstanding. The court ruled that Edgars’ conduct of allowing missed payments in the past prevented them from enforcing the strict terms of the contract regarding repossession. This case demonstrates the importance of clear communication and consistent application of contractual terms.

 

 

3. Barkhuizen v Napier [2000] ZSCA 61 (SCA):

 

This case dealt with misrepresentation in a contract. Mr. Barkhuizen bought a farm based on the seller’s false claims about the property’s water availability. The SCA ruled in favor of Barkhuizen, allowing him to cancel the contract due to the seller’s misrepresentation. This case serves as a reminder of the importance of conducting proper due diligence before entering into contracts, especially regarding property purchases.

 

 

4. Administrator, Transvaal v Tvhedale [1984] (3) SA 784 (A):

 

This case explored the concept of “frustration of contract”. The Transvaal Provincial Administration entered into a contract with Tvhedale for the construction of a road. However, unforeseen circumstances, including a labor strike, significantly increased construction costs. The court found that the contract had been frustrated due to these unforeseen events, relieving both parties from their obligations. This case highlights the possibility of contractual obligations being discharged under exceptional circumstances.

 

 

5. City of Cape Town v Pewsey Farms (Pty) Ltd [2005] ZASCA 10 (SCA):

 

This case involved a breach of a lease agreement. The City of Cape Town leased land to Pewsey Farms for agricultural purposes. However, the city failed to maintain the irrigation system, hindering the farm’s productivity. The SCA ruled in favor of Pewsey Farms, awarding them damages for the City’s breach of contract. This case emphasizes the importance of both parties fulfilling their contractual obligations.