Case Law[2025] ZAGPPHC 887South Africa
Phophi Travel Tour and Project v South African Biodiversity Institute (A92121/2024) [2025] ZAGPPHC 887 (11 August 2025)
Headnotes
a bona fide belief that a unit price in line-item two of the quotation referred to a box and not a single Pop-Up and thus, 10 boxes ought to have been delivered at the price of R9 200.00.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Phophi Travel Tour and Project v South African Biodiversity Institute (A92121/2024) [2025] ZAGPPHC 887 (11 August 2025)
Phophi Travel Tour and Project v South African Biodiversity Institute (A92121/2024) [2025] ZAGPPHC 887 (11 August 2025)
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sino date 11 August 2025
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
Number: A92121/2024
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: YES
Reserved
27 May 2025
Delivered
11 August 2025
In
the matter between:
PHOPHI TRAVEL TOUR AND
PROJECT
APPELLANT
And
SOUTH AFRICAN
BIODIVERSITY INSTITUTE
RESPONDENT
Disclaimer:
This Order is made an Order of Court by the Judges whose names are
reflected herein, duly stamped by the Registrar of
the Court and is
submitted electronically to the Parties/their legal representatives
by email. This Order is further uploaded to
the electronic file of
this matter on CaseLines by the Judge or his/her Secretary/Registrar.
The date of this Order is deemed to
be July
2025
.
JUDGMENT
Nicholson AJ
Introduction
[1]
This is an appeal against both the judgment and the costs order
handed down by the Honourable
Magistrate T Truter in the above matter
on 10 July, 2024, in the District Magistrate’s Court of
Pretoria, in terms of which
the Court granted absolution from the
instance at the end of the hearing and ordered the Appellant to bear
the costs of suit.
The parties
[2]
The Appellant is Phophi Travel Tour and Project, (“Phophi”,
“Appellant”, or
“Plaintiff”).
[3]
The Respondent is the South African National Biodiversity Institute
(“SANBI”, “Respondent”,
or “Defendant”),
a state-owned entity.
Background
[4]
The Appellant has appealed the judgment of Honourable Magistrate T
Truter (“Magistrate Truter”)
from the Court
a quo
on both the merits and on the costs award.
[5]
The Respondent opposes the appeal.
[6]
Judgment in the Court
a quo
was granted on 10 July 2024 by the
Honourable Magistrate Truter, and the Notice of Appeal was delivered
on 15 August 2024.
[7]
It was common cause between the parties in the matter that:
[7.1]
SANBI issued a Request for Quotation, RFQ0002608 (“RFQ”)
on 19 January 2022, requesting potential
service providers to provide
quotations for the supply of three line-items, one of which was, “10
I25 Pop Up (12 per box)”.
[1]
[7.2]
Phophi submitted an offer, in the form of a quotation, in accordance
with the RFQ.
[2]
[7.3]
In the evaluation of quotations submitted by potential service
providers, Phophi’s pricing was the
best overall and its
quotation was accepted by SANBI, and Phophi was appointed to provide
the goods.
[7.4]
On 16 February 2022, SANBI issued a Purchase Order, P[...] (“PO”)
to Phophi and allocated the
funds to pay the Appellant on delivery of
the goods.
[7.5]
The Appellant was required to source the goods to be supplied at its
own cost and to deliver same to the
Respondent.
[7.6]
The Appellant delivered fully on line-items one and three but, it
delivered only 10 individual units of
I25 Pop Ups (line-item two) on
17 March 2022, instead of 10 boxes, each containing 12 I25 Pop Ups,
for which it had allegedly quoted.
[7.7]
After delivery of the goods by the Appellant on 17 March 2022, the
Respondent brought the defective delivery
to the Appellant’s
attention by means of an e-mail addressed to the Appellant by Ms.
Felicity Poole.
[3]
[8]
On 5 December 2022, the Respondent demanded full performance in
accordance with the RFQ, and undertook
to pay in full, on perfection
of performance.
[4]
[9]
In its demand for performance, the Respondent emphasised its position
that the
quantities
requested
in
the
quotation were carefully and unambiguously described by name and
quantity, that the Appellant had not delivered in accordance
with the
terms and conditions of the contract, and that the payment of R 152
700.00 was not yet due and would only become due and
payable upon
full compliance with the terms and conditions of the contract.
[5]
[10]
This
offer to pay on delivery of all the goods was repeated in follow-up
correspondence with the Appellant’s attorneys on
12 December
2022.
[6]
[11] On
7 December 2022, the Appellant proceeded to institute proceedings
against the Respondent for payment of
the sum of R 152 700.00, being
the amount payable in respect of performance under the accepted
quotation.
[7]
[12] In
its plea, the Respondent again averred that the Appellant had failed
to perform in terms of the agreement
and, consequently, payment was
not yet due and would only become due and payable upon receipt of
full delivery of the goods per
the agreement between the parties.
[8]
The hearing before the
Court
a quo
:
[13]
The Appellant asserted in the Court
a quo
:
[13.1] That
there had been an error on the part of the Appellant in interpreting
the quantity of line -item two in the
quotation and it was submitted
that this was a
bona
fide
mistake.
[9]
[13.2] That
the error was not fatal to the agreement to such an extent as to
warrant cancellation of the agreement,
which is what the Appellant
asserted the Respondent sought.
[10]
[13.3] That
it was of the view that it should be allowed to remedy its
bona
fide
mistake. To compel performance otherwise, would amount to requiring
the Appellant to perform the impossible.
[11]
[14]
The Respondent contended that:
[14.1] The
quotation received was, amongst others, for delivery of 120 I25
Pop-Ups to the value of R9200.
[14.2] The delivery
of only 10 I25 Pop-Ups rendered delivery defective in terms of the
applicable General Conditions of Contract
(GCC), a copy of which was
included in the trial bundle.
[12]
[14.3] The GCC is a
public document applicable to parties having dealings with the
government or state-owned-entities such
as those between the
Appellant and the Respondent.
[14.4] It held a
bona fide
belief that a unit price in line-item two of the
quotation referred to a box and not a single Pop-Up and thus, 10
boxes ought to
have been delivered at the price of R9 200.00.
[14.5] It
maintained the position that it could only consider paying the
Plaintiff on delivery of the balance of the Pop-Ups,
i.e. a further
110 I25 Pop-Ups, without variation of the quoted amount of R9200.00.
And, finally,
[14.6] The
incomplete delivery vitiates the agreement to such an extent that the
Respondent is absolved from paying for any
items already delivered
unless and until performance is perfected.
The judgement of the
Court
a quo
and reasons therefor
[15]
The Court
a
quo
noted that “[i]t
is
trite
that
the
plaintiff
must
prove
their
case
on
a
balance
of
probabilities”
[13]
and
that the claim emanated from the contentious delivery of the “I25
Pop Up (12 per box)” and the refusal of the defendant
to make
payment in respect of any of the items quoted, including those duly
delivered, unless there is full delivery of all items
in accordance
with the agreement;
[14]
[16] It
noted further, that there was “confusion” that arose
concerning whether the quotation submitted
by the Appellant, based on
the RFQ issued by the Respondent, was for the delivery of 10
individual units or 10 boxes, that could
not be remedied if the
parties remained steadfast with regards to their viewpoints in this
regard, which they did.
[15]
[17]
The Plaintiff contended that there was an obligation on the Defendant
to perform a vetting process where
items quoted were not consistent
with market values and, as such, the Defendant should have been aware
that the Plaintiff’s
quotation was only for 10 I25 Pop Ups and
not 10 boxes.
[18]
Defendant’s testimony was, however, that it was the
practice to only vet a quotation in circumstances
where a bidder
quotes a price higher than the market value of an item, however, if
the price quoted by a particular bidder is less
than the market
value, this is of no concern as there could be a myriad of reasons
for the under-quotation.
[16]
[19]
The parties both testified as to their true belief on the meaning of
the quotation and the Court
a
quo
found both parties credible. For this reason, the court concluded
that, if it were to accept the Respondent’s version, that
the
quotation provided was for R 920.00 per box, with each box containing
12 units, this would negate the explanation provided
by the
Appellant.
[17]
[20]
The Court
a quo
was of the view that the parties did not
perceive the quotation submitted in the same light and, as a result,
there was no meeting
of the minds. Consequently, it could not be
concluded that any form of agreement came into being, between the
parties.
[21]
Given that, in the Court
a quo
’s view, the versions as
to the meaning of the quotation were mutually destructive, it granted
absolution from the instance
and awarded costs against the Appellant.
[22] The main issue
before this Honourable Court is thus, whether the Court
a quo
erred in arriving at its decision on the evidence that served
before it.
# Legal principles
Legal principles
[23] It
is trite that consensus is the foundation of contract.
[18]
[24] In
relation to contracts of sale, this Court has held that there must be
a mutually communicated meeting
of the minds of the contracting
parties with the intention of contracting a sale for such an
agreement to come into existence.
[19]
[25] In
Steyn v
LSA Motors Ltd
[20]
the
Court stated that where the parties’ subjective perceptions and
intentions differ with regards to a contract, “each
can only
testify to its own state of mind and cannot directly challenge the
evidence of the other.
[21]
Thus, if the Court is of the view that the testimony of both parties
is credible, it is competent for the Court to conclude that
the minds
of the parties never met and there was thus a lack of consensus. In
such a situation, the outward appearance of agreement
and the
expressed intention do not automatically result in contractual
liability.
[26]
The Court in the above matter,
[22]
referring to the
dictum
of Blackburn J in
Smith
v Hughes
,
[23]
indicated that the Court would also be required to assess whether a
reasonable man in the position of the offeree would have accepted
the
offer in the belief it represented the true intention of the offeror.
Analysis
[27]
The test for absolution to be granted by a court at the close of the
Plaintiff’s case, is authoritatively
`set out in
Claude
Leon Lights (SA) Ltd v Daniel
[24]
and,
Akoon
v Kader
,
[25]
the full bench of the High Court upheld, on appeal, the decision of
the Magistrate’s Court, to grant absolution from the
instance
at the close of a civil trail when, having heard all the evidence,
the Magistrate was unable, on the evidence, to determine
which
party’s version of the contract was the correct one. Thus,
absolution remains the appropriate outcome in circumstances
where the
evidence does not support a particular set of probabilities.
[28]
This view was also supported in
National
Employers’ General Insurance Co Ltd v Jagers
,
[26]
per Eksteen AJP, where
a
full bench of the High Court upheld the decision of the Judge sitting
in the High Court, that the Court
a
quo
,
finding no reason for preferring the evidence adduced by either side
as more reliable, found that the Plaintiff had failed to
discharge
the onus that rested on him.
[29]
The current matter before this court can be distinguished from the
above matters in which absolution from
the instance was granted, in
that the quotation submitted by the Appellant to the Respondent
exactly mirrored the wording of the
RFQ.
[30]
Despite having ample opportunity to query the meaning of line-item
two with the Respondent before submission
of the quotation, the
Appellant failed to do so.
[31] It
appears from the evidence that the Appellant needed to source all
three of the line-items for delivery
in terms of the quotation,
however, it only obtained a quotation for line-item two from the
manufacturer after it had been awarded
the contract, at which stage
it became aware that it could not perform as it had undertaken.
[32]
Thus, as was the case in
Smith
v Hughes
,
[27]
the fact that the Appellant made a mistake was entirely its own
fault. It was not misled by the Respondent and there was no mutual
mistake. Thus, the agreement is valid.
[33]
Furthermore, the Respondent, as the offeree, receiving a quotation
that mirrored the RFQ could not reasonably
have detected or
understood that the Appellant was labouring under any confusion with
regards to the quantity of items required
to be delivered.
[34]
The Honourable Magistrate Truter found, despite Ms Ramabulana’s
concession that she, acting for the
Appellant, made a mistake, that
there was no basis on which to find that either party’s version
as to the meaning of the
quotation delivered by Phophi was more
probable.
[28]
In effect, the
Court
a
quo
found
that the probabilities as to the agreement that was concluded, were
evenly balanced.
[35] It
was eminently competent for the Court, in the light of that finding,
to issue a judgment granting absolution
from the instance, however,
as appears below, this Court differs from the view of the Court
a
quo
as regards the finding on the balance of probabilities in
this matter.
[36]
The Appellant stated it had made an error with regards to the
quantity of I25 Pop-Ups to be delivered, which
resulted in an
under-quotation to the Respondent on that line-item.
[37]
This under-quotation was not detected by the Respondent who based its
award of the bid on the competitive
pricing of the Appellant’s
quotation with regards to this line-item, given that its quotation on
the other two line-items
was higher than one or more of the other
bidders’ quotation on the same items.
[29]
[38]
The Appellant seeks the Court’s intervention to allow her to
remedy her error and to require the Respondent
to accept that the
delivery of line-items one and three, together with ten I25
Pop-Ups constitutes full performance in terms
of the quotation and
entitles it to payment in full in terms of the agreement.
[39]
The Respondent has been unwavering in its view that it cannot make
payment on the agreement unless full delivery
is made in compliance
with the accepted quotation. As a State-owned entity, it has strict
procurement processes and procedures
in place that must be complied
with before a payment can be made. Variation of a quotation after the
award of a bid is not possible
and thus, it remains steadfast in
requiring full performance in terms of the agreement before payment
is made.
[40]
While the Court
a quo
was fully within its rights to consider
the issue of absolution from the instance
mero motu
, it was,
with respect, incorrect in finding that there was dissensus between
the parties that founded such a finding of absolution
from the
instance in this case.
[41]
The onus was on the Plaintiff/ Appellant to establish its case before
the court
a quo
on a balance of probabilities. Based on the
evidence led, the Plaintiff/ Appellant failed to discharge the onus.
Given there was
no confusion with regards to what exactly had to be
delivered in terms of line items one and three, and the quantities
required
in respect of those items, it seems unlikely that the
Appellant did not comprehend from the outset, that the Respondent
required
a quotation for delivery of 10 boxes of I25 Pop Ups and not
simply 10 such Pop-Ups.
[42]
Furthermore, it is noted that the determining factor in the award of
the quotation was, in fact, the low
price quoted on this line-item.
[43] It
appears that the Appellant was intent on making delivery on the
quotation until it realised that the amount
it had quoted in terms of
line-item two was hopelessly inadequate to cover the cost it would
incur in securing the items which
were manufactured by a third party.
[44] It
was only after the Appellant had obtained a quotation from its
supplier on this line-item, that it became
aware of the cost per item
and the fact that the items did not come in boxes but as individual
items.
[45] It
appears from the above, that the Appellant possibly failed to
properly cost the quotation before submitting
it and thus, found
itself in the invidious position of either having to honor the
agreement at own cost, or accepting that the
agreement would have to
be set aside and the goods already delivered returned to it, with a
possible action for damages accruing
to the Respondent.
[46]
Although the appellant alleged that it would be impossible for it to
perform on the contract,
[30]
this is not the case, performance remains objectively possible,
although it would be expensive for the Appellant to perform as
agreed.
[47] It
seems that, in order to avoid either of the two outcomes mentioned in
par [45] above, the Appellant sought
the Court
a quo
’s
intervention to compel the Respondent to make payment in full,
despite the fact that the delivery remained incomplete.
[48]
The Appellant’s assertion that the Respondent should have
vetted the quotation and identified the under-quotation
on line-item
two was dealt with in the evidence.
[31]
The Respondent testified that it vets quotations where prices exceed
the market price substantially but, not where the price quoted
is
below the market price as this could be the case for any number of
reasons.
[49] In
this instance, the under-quotation could have been an inducement to
award the quotation or a genuine error
on the part of Appellant with
regards to the actual cost of the item, however, the Respondent
cannot be faulted for trying to achieve
the best price for the
required items.
[50] It
can further, not be said, as Appellant asserts in its Heads of
Argument, that there is no prejudice or
hardship for the Respondent
in allowing the Appellant to provide the additional 110 I25 Pop-Ups
at a revised price.
[32]
Indeed, it would be prejudiced by having to pay a higher price for
the goods than was initially agreed and, this would potentially
expose it to a risk of legal challenges from unsuccessful bidders on
the RFQ.
[52]
The onus was always on the Appellant to carefully evaluate the cost
of doing the business before submitting
the quotation, which clearly
it did not do.
[53]
The Respondent has not acted unreasonably or unfairly in refusing to
make payment prior to complete performance,
as is required in terms
of the applicable GCC.
[54]
Thus, clearly, it is my view that the version of the Respondent, as
presented before the court
a quo
, is more probable than the
version put forward by the Appellant. Consequently, the order of the
court
a quo
granting absolution from the instance on the basis
of the evidence presented, amounted to a misdirection on the part of
the court
.
[55]
During the appeal hearing, the Respondent indicated a willingness to
return to the Appellant all goods already
delivered in terms of the
RQF. This should be done.
[56] In
light of the above, I propose the following order:
[56.1]
The appeal is dismissed with costs on scale B.
[56.2]
The Respondent must return to the Appellant all goods already
delivered to it in terms of the agreement within 30 days
of date of
this judgement.
HEARD ON 27 MAY 2025
DELIVERED ON 11 August
2025
CMA
NICHOLSON AJ
ACTING
JUDGE OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
I
agree and it is so ordered.
COLLIS
J
JUDGE
OF THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
Appearances
For the Appellant:
Mr MS Manganya
Dasishi Nthambeleni Inc
300 Witch-Hazel
Eco-Fusion Office Park
Phase 4, Block B
Centurion
Tel: (0120 323 4581
E-mail: admin3dninc.co.za
Ref: SM/DNINC/R36/CIV
For the Respondent:
Cheadle Thompson &
Haysom Inc
15
th
Floor,
Libridge
25 Ameshoff St,
Braamfontein
Johannesburg
Tel: (011) 403 2765
E-mail:
Molatelo@cth.co.za
&
Zimkhitha@cth.co.za
Ref: SAN81001/M Makhura/
Z Mbhekeni
c/o Savage Jooste Adams
141 Boshoff St
Nieuwe Mucklenuek
Pretoria
Tel: (012) 452 82 00
E-mail:
francinap@savage.co.za
[1]
CaseLines, 007-201 to 007-202.
[2]
CaseLines, 007-92.
[3]
CaseLines, 007-159.
[4]
CaseLines, 007-168, par 8.
[5]
CaseLines,
007-168 par 7.
[6]
CaseLines,
007-172-173.
[7]
CaseLines,
007-6.
[8]
CaseLines,
007-31 – 32 pars 7 & 8.
[9]
CaseLines,
003-6, par 4.7.
[10]
CaseLines,
003-6 par 4.8.
[11]
CaseLines,
003 par 4.9.
[12]
CaseLines 007-132 to 143.
[13]
CaseLines, 005-04 at 28.
[14]
CaseLines, 005-2 at 8.
[15]
CaseLines, 005-3 at 19.
[16]
CaseLines, 005-03 at 21 to 24.
[17]
CaseLines, 005-6 at 12 to 13.
[18]
Cinema
City (Pty) Ltd v Morgenstern Family Estates (Pty) Ltd and Others
[1980]1All
SA 30 (A);
Swart
v Vosloo
1965
(1
)
SA 100 (A)
;
Commissioner
of Inland Revenue v Saner
1927
TPD 162
.
[19]
Commissioner
for Inland Revenue v Saner
1927
TPD 162.
[20]
1994
(1) SA 49 (A).
[21]
1994
(1) SA 49
(A) at par 19.
[22]
At par 25.
[23]
(1871) LR 6 QB 597
at 607
[24]
1976
(4) SA 403
(A) at 409 G - H.
[25]
1963
(2) SDA 664 (N).
[26]
1984 (4) SA 437 (E).
[27]
(1871) LR 6 QB 597.
[28]
CaseLines 005-6 at 13.
[29]
CaseLines 008-64 at lines 20 to 24.
[30]
See par [13.3] above.
[31]
CaseLines, 005-03 at 21 to 24
[32]
Caselines, 002-6 par 4.10.
sino noindex
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