Case Law[2023] ZAGPPHC 676South Africa
Spence v Wu (8184/2018) [2023] ZAGPPHC 676 (19 July 2023)
High Court of South Africa (Gauteng Division, Pretoria)
19 July 2023
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Spence v Wu (8184/2018) [2023] ZAGPPHC 676 (19 July 2023)
Spence v Wu (8184/2018) [2023] ZAGPPHC 676 (19 July 2023)
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sino date 19 July 2023
SAFLII
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Policy
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
REPUBLIC
OF SOUTH AFRICA
Case
Number:
8184/2018
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
DATE:
19 July 2023
SIGNATURE:
JANSE VAN NIEUWENHUIZEN J
In
the matter between:
ADRAIN GORDON
SPENCE
Plaintiff
and
SIMON TUNG-CHENG WU
Defendant
JUDGMENT
JANSE VAN
NIEUWENHUIZEN J:
[1]
The plaintiff claims specific performance in terms of an agreement of
sale between
the parties. The claim is for payment of an amount of R
15 000 000, 00, being the purchase price that is due and payable by
the
defendant in terms of the agreement.
[2]
The defendant defended the claim and instituted a counterclaim for
cancellation of
the agreement and repayment of an amount of R 5 025
750,00 which the defendant had paid to the plaintiff in terms of the
agreement.
The defendant, furthermore, tenders the payment of
equitable compensation to the plaintiff in lieu of the defendant’s
restitution
excluding the plaintiff’s former directorship in
the companies that form the subject matter of the sale.
Issues common cause
[3]
The facts set out
infra
are common cause between the parties.
[4]
The parties entered into a partly written, partly verbal agreement on
9 December 2019.
The written agreement reads as follows:
“
AGREEMENT
Terms:
1.
Simon agrees to pay R20m to Adrian over 3 years
(2017/2018/2019)
2.
Simon agrees to release Adrian from sureties and will
indemnify him
3.
Only guarantee is based on the business surviving
4.
Agreement is based on trust and a handshake
5.
Agreement to be concluded by close of business, Friday 9 Dec
2016
Simon Payment
Commitment (as per the attached payment schedule)
1.
7/12/2016 – Transfer car
2.
14/12/2016 – R3m
3.
20/12/2016 – Loan account (R273k)
4.
30/4/2017 – Loan account (R600k)
5.
01/01/2017 to 30/07/2017
-
7 months’ Salary (3 months’ notice and 4 months’
severance – 16 weeks for 16 years’ service)
-
Jan and Feb = R 255 per month (normal as previously agreed)
-
Mch – Jul = R 255 per month (First of monthly instalments
against R 4m balance)
R 1,275m
6.
01/08/2017 to 30/11/2017
-
Aug to Nov = R 250 per month = R1m (Second batch of monthly
instalments against R4m balance)
R1m
7.
31/12/2017
-
Dec = R1,724m on 31/12/2017=
R1,724m
R7m
8.
2017 – R4m ($x) min per month $20k (R250k)
9.
2018 – R7m ($x) min per month $20k (R250k)
10.
2019
– R6m ($x) min per month $20k (R250k)
11.
If
company liquidated, written confirmation by auditors, forfeit
2018-R7m and 2019-R6m
12.
A
grace period of two weeks to be allowed for all payments
13.
No
further claims – full and final settlement
Adrian Resignation
Commitment
1.
09/12/2016 – Resign as director immediately
2.
09/12/2016 – Return shares immediately – resign as
shareholder
3.
09/12/2016 – Immediately appoint new Director (Simon
Wu)”
[5]
The further express, alternatively implied, further alternatively
tacit terms of the
agreement were:
5.1
the plaintiff sold to the defendant his shares in Soviet Group (Pty)
Ltd and
Erf 3[...] F[...] Street Investments (Pty) Ltd (“the
companies) for the price of R 20 000 000, 00;
5.2
the plaintiff would transfer his shares to the defendant on signature
of the
agreement;
5.3
the plaintiff would resign as a director of the companies.
[6]
The plaintiff complied with his obligations in terms of the written
agreement, in
that he:
6.1
transferred his shares in the companies to the defendant; and
6.2
resigned as a director of the companies.
[7]
The defendant did not comply with his obligations in terms of the
written agreement,
in that the defendant failed to pay the full
purchase price. According to the plaintiff, the defendant only paid R
5 million on
or before 31 December 2017. The defendant avers that he
paid an amount of R 5 025 750, 00. Be that as it may, the plaintiff’s
claim is for payment of the remainder of the purchase price.
Issues in dispute
[8]
The dispute between the parties pertains to the terms of the oral
agreement. Although
the plaintiff did not plead the terms of the oral
agreement, the plaintiff dealt with the terms in his evidence.
[9]
The defendant pleaded that the terms of the oral agreement were that:
9.1
the plaintiff would not compete in any capacity whatsoever with
Soviet, either directly
or indirectly for at least the duration of
the agreement; and
9.2
the plaintiff would not do anything or cause anything to be done that
would adversely affect
the value or business of Soviet.
[10]
The plaintiff denies that the parties agreed on the aforesaid terms.
[11]
It is common cause that the plaintiff competed with Soviet through
the Lee Cooper Brand. As aforesaid,
the plaintiff, however, denies
that it was a term of the agreement that he would not compete with
Soviet.
[12]
The defendant pleaded that the plaintiff breached the oral terms, in
that the plaintiff:
12.1
competed, and still competes, with Soviet through the Lee Cooper
brand; and
12.2
interfered with the contractual relationship between Soviet and its
employees and/or agents and/or customers.
[13]
In respect of the plaintiff’s performance, the defendant
pleaded that the parties on 8
March 2016, entered into a written
cession and pledge of shares agreement with Hellman Worldwide
(Logistics) (Pty) Ltd and Hellman
Worldwide Supply Chain Services SA
(Pty) Ltd (“Helman) in terms of which the parties ceded and
pledged to Helman their respective
shareholding in Erf 3[...] F[...]
Street Investments (Pty) Ltd.
[14]
In the result, the plaintiff could not sell or transfer his shares to
the defendant and in the
circumstances the plaintiff has not complied
with his obligations in terms of the agreement. The defendant is,
therefore, excused
from making payment to the plaintiff.
[15]
I pause to mention, that it is common cause that the aforesaid
agreement is still in place.
[16]
The defendant’s counterclaim is premised on the plaintiff’s
breach of the oral terms
alleged by the defendant. The defendant
alleges that he is entitled to cancel the agreement and pleaded: “
the
defendant hereby cancels the agreement forthwith and claims
restitution”
.
[17]
The restitution is pleaded as follows:
“
Pursuant to
cancellation of the agreement the defendant is entitled to claim
repayment from the plaintiff of R 5 million, subject
to this Court’s
discretion to determine an equitable amount of compensation in favour
of the plaintiff in lieu of the defendant’s
restitution
excluding the plaintiff’s former directorship in the companies”
Evidence
[18]
The plaintiff and defendant were both shareholders and directors in
the Soviet Group of companies.
The company mainly sells denim apparel
to retailers, such as Edgars, Truworths etc.
[19]
The plaintiff is well known in the retail industry, had the
commercial know-how and therefore
was the managing director that
attended to the day-to-day running of the company. The defendant had
extensive contacts in the financial
sector and mainly obtained and
provided capital for the running of the company’s operations.
[20]
The parties were in a business relationship for approximately 16
years and on all accounts, the
relationship was healthy and mutually
beneficial. As from 2015, the company’s financial affairs got
increasing worse. During
the middle of 2016, the plaintiff indicated
that he wishes to withdraw from the company and offered to sell his
portion of the
business to the defendant.
[21]
The defendant was not amenable to the separation and endeavoured to
convince the plaintiff to
remain in the business. Notwithstanding the
defendant’s best efforts, the plaintiff was not swayed and
negotiations in respect
of the sale of the business commenced during
October 2016.
[22]
The negotiations were facilitated by Carel Bothma (Bothma), the
financial director of Soviet.
After a lot of to and fro, Bothma
presented a draft agreement to the parties on 8 December 2016.
[23]
It is common cause that the parties had a discussion about a possible
restraint of trade provision
after receipt of the draft agreement on
8 December 2016. The respective versions of the parties as to
what was discussed
and what was actually agreed, differ vastly.
[24]
The plaintiff testified that the defendant approached him on the 8
th
of December 2016 and suggested “
a type of restraint that
would prohibit me from trading.”
The plaintiff stated that
his response was very clear, if the defendant paid the full purchase
price of R 20 million on or before
9 December 2016, he would happily
look at such an option. The money was, however, not forthcoming and
he signed the written agreement
in its present form on 9 December
2016.
[25]
During cross-examination, the plaintiff was referred to the
particulars of claim and more specifically
the allegation that the
agreement between the parties was partly written and partly oral. The
plaintiff denied that the agreement
was partly oral. Upon some
prompting from Mr Shepstone, the plaintiff answered that the oral
part of the agreement meant ”
that we honour each other’s
personal lives, we basically respect where we come from.”
[26]
Mr Shepstone put it to the plaintiff that clause 4 of the agreement,
namely “
the agreement is based on trust and a handshake”
represents the verbal agreement that the parties would act in
each other’s best interest. The plaintiff agreed.
[27]
Mr Shepstone pointed out that clause 4 was only inserted into the
written agreement after the
discussion between the parties about the
restraint of trade. The plaintiff agreed. The plaintiff agreed that
there was correspondence
exchanged between the parties in respect of
the implementation of the agreement. The plaintiff was referred to an
email that he
sent to the defendant on 14 March 2017, in which the
plaintiff stated the following: “
I can assure you that my
intentions are clear regarding our agreement and I will stick with
it. I am a man of my word.”
[28]
When asked to which portion of the agreement the plaintiff referred,
the plaintiff stated the
following: “
And in terms of our
agreement where we keep our business tidy, in terms of our personal
lives, yes.”
It was pointed out to the plaintiff that the
term he refers to did not appear in the written agreement, which
entails that the
agreement between the parties had oral terms as
well. The plaintiff insisted that the parties only agreed to the
terms that are
contained in the written agreement.
[29]
The plaintiff’s attention was drawn to an email from the
defendant dated 5 July 2017, in
which the defendant said the
following: ”
With regards to honour and trust and a
handshake. I am sticking to my part. Perhaps you should consider
doing the same. I have seen
the billboard at Melrose Arch, and it is
not a McDonald sign.”
The plaintiff was asked whether he
knows what the defendant was referring to and the plaintiff provided
the following answer: “
At the point of exit, Mr Wu
questioned what I would be doing, and at that point I was not sure.
So, I said who knows, I might open
a McDonalds...”
[30]
It was put to the plaintiff that he informed the defendant that he
would be immigrating to Australia
and the plaintiff confirmed that it
formed part of their discussion. Mr Shepstone stated that it was for
this reason that the last
three amounts payable in terms of the
agreement were in dollars. The plaintiff answered that immigrating to
Australia was only
an option.
[31]
In respect of his involvement with Denim HQ, the company that trades
in the Lee Cooper brand
and is in direct competition with Soviet, the
plaintiff explained that Mr Kriek, a property developer, wanted to
enter the clothing
industry and requested the plaintiff to assist.
The plaintiff was hesitant to provide the exact date on which he
became involved
in Denim HQ, until he was referred to an email sent
by him on 13 January 2017 using the following email address: a[...].
It was
put to the plaintiff that he joined Denim HQ immediately after
his departure from Soviet.
[32]
Upon further questioning, the plaintiff admitted that he did not use
the Denim HQ email address
in his correspondence with the defendant.
The plaintiff stated that he used another email address because that
is the address he
told the defendant he will use in their
correspondence. During further cross-examination, the plaintiff, for
reasons not entirely
evident, endeavoured to minimise his involvement
in Denim HQ.
[33]
The plaintiff could not explain why he did not tell the defendant,
with whom he had a 16 year
business relationship, that he was
involved in Denim HQ.
[34]
It was put to the plaintiff that he endeavoured to solicit, Martin
Greenberg, Anthony Matthysen
and Ramesh Sumke, all employees of
Soviet, to come and work for Denim HQ. The plaintiff denied this.
[35]
Lastly, it was put to the plaintiff that he interfered in the
customer relationships of Soviet.
The plaintiff, once again, denied
the allegation.
[36]
The plaintiff closed its case, and the defendant was called to give
evidence. Prior to commencing
with his evidence, Mr Shepstone
informed the court that, although English is not his first language,
Mr Wu will give evidence in
English. At the time, it seemed that Mr
Wu’s command of the English language was sufficient to proceed
in English. As will
appear
infra
, Mr Wu did not have any
difficulties in giving evidence in English during
examination-in-chief, but some difficulties arose during
cross-eamination.
[37]
The defendant testified that there were a few “
chats”
between the parties from 7 to 9 December 2016, prior to the
signing of the agreement. The defendant
inter alia
asked the
plaintiff what he was going to do after he left Soviet. When asked
what else was discussed, the defendant gave the following
answer: “
In
my words I mentioned you cannot be doing the same business in South
Africa”
.
[38]
The defendant testified that the plaintiff knew all the suppliers,
knew the design and the price
at which the products were sold. Any
competition from the plaintiff’s side would have a negative
impact on Soviet.
[39]
According to the defendant, the plaintiff responded as follows: “
He
asked me to trust his words because we come through the long
relationship, he is a man of his words. I have to trust him with
a
handshake he will not do that.”
When asked what he
understood from the words: “
I will not do that”
,
the defendant answered as follows:
“
M'Lady, the way
I understand is ..because we know each other for so many years so in
a way my understanding is he is …..to
immigrate to Australia
..
[I]
specifically asked him what you are going to do
overseas. He said I do not know I am thinking about opening a
McDonald franchising
business.”
[40]
When confronted with the plaintiff’s version that he would only
agree on a restraint of
trade clause if the full purchase price of R
20 million is paid before the 9
th
of December 2016, the
defendant denied that such a conversation took place and provided the
following answer:
“
M’Lady,
on the state of signature in my mind because the company is so sick
all that go through my mind is do not do the same
type of business
leave me alone give me chance to fix the business and if the business
survive you can give room of the three years
done to juggle to make a
plan to pay him.”
[41]
The defendant testified that he requested Bothma to insert clause 4
(
Agreement is based on trust and a handshake
) into the final
agreement and provided the following explanation for the insertion of
the clause:
“
M’Lady,
because ..he said trust me …I will not do anything to harm
you, let me go to Australia so the agreement is
based on trust and a
handshake. I have to trust you means he is a man of his word and I
have to trust him and according to the
culture I have that is good
enough.”
[42]
Mr Shepstone put it to the defendant that the parties orally agreed
prior to the signing of the
final agreement that the plaintiff will
not compete with Soviet. The defendant agreed. When asked why
the term was not included
in the written agreement, the defendant
stated the following:
“
According to
the culture I have, if the person in front of me said he is going to
Australia, he is going to open franchise business,
then ask to put in
US dollar, I was under the heavy pressure, I firmly under the
impression I believe he is not going to go in
competition or do the
same type of business in South Africa.”
[43]
On some prompting from Mr Shepstone, the defendant testified that the
“
oral”
agreement that the plaintiff “
will
not be doing the same business in South Africa”
was
reflected in clause 4.
[44]
The defendant testified that one of his employees, Martin Greenberg,
informed him that the plaintiff
is trading in competition with Soviet
and told him not to pay the plaintiff.
[45]
Mr Potgieter SC, counsel for the plaintiff, commenced with
cross-examination on 7 February 2023.
Mr Potgieter asked a few
questions in respect of the plea filed on behalf of the defendant.
The defendant struggled to follow some
of the questions and at some
stage requested Mr Potgieter “
to use easier English”
and stated that he battles to understand Mr Potgieter’s
vocabulary.
[46]
Mr Potgieter answered that he might be doing the defendant an
injustice in proceeding in English.
The court requested the parties
to discuss the issue and adjourned the court. When the court resumed,
Mr Potgieter indicated that
he had no further questions for the
defendant.
[47]
The last witness to testify was Martin Greenberg (Greenberg).
[48]
Greenberg stated that he was contacted by the plaintiff, who informed
him that he had taken over
a clothing factory in Botswana that
supplied goods to Soviet. The plaintiff wanted to know whether Soviet
will still order goods
from the factory. Greenberg discussed the
matter with the defendant and the defendant indicated his willingness
to continue ordering
from the Botswana factory.
[49]
A meeting was arranged with the plaintiff, during which meeting the
plaintiff told Greenberg
that he is investing in the Lee Cooper
brand. The plaintiff also wanted to know if Greenberg will join him
in the new business
venture. Greenberg testified that he was shocked
when he learned that the plaintiff joined a business that is in
direct competition
with Soviet.
[50]
Greenberg immediately informed the plaintiff that Soviet will not
order goods from a factory
that provide goods to a competitor. Upon
his arrival at the office, Greenberg informed the defendant that the
plaintiff is competing
with Soviet. Greenberg testified that the
defendant was equally shocked when he heard the news.
[51]
During cross-examination, Greenberg indicated that Soviet is still
trading. When confronted with
the defendant’s pleaded version
that Soviet went out of business because of the plaintiff’s
conduct, Greenberg responded
that Soviet did lose some customers in
2017 but are still in business.
[52]
Lastly, Greenberg did not consider the plaintiff approaching
customers of Soviet as interfering
with Soviet’s business.
Greenberg testified that it was not malicious, but normal business.
Discussion
Oral terms of the
agreement
[53]
From the evidence it is clear that the respective versions of the
parties in respect of the oral
terms of the agreement is mutually
destructive. The technique generally employed in resolving factual
disputes of this nature was
succinctly set out in
Stellenbosch
Farmers’ Winery Group Ltd and Another v Martell et Cie and
Others
2003 (1) SA 11
(SCA) at par [5], namely:
“…
..To
come to conclusion on the disputed issues a court must make findings
on *a) the credibility of the various factual witnesses;
(b) their
reliability; (c) the probabilities…”
and
“
when all
factors are equipoised probabilities prevail.”
[54]
The plaintiff was a confident witness who stuck to his version during
cross-examination. The
plaintiff did, however, find it difficult to
explain events that did not correspond with his version. In my view,
the probability
of the plaintiff’s version overshadows the
question whether he was credible and reliable.
[55]
The defendant fared very well during evidence. The defendant came
across as an honest person
to whom honour, trust and honesty are of
utmost importance. His demeanour in the witness stand was humble and
straightforward.
The fact that the defendant felt a sense of
incredulity at the plaintiff’s behaviour was palpable in court.
The defendant’s
version was not tested during
cross-examination, and I have no hesitation in accepting his evidence
as both credible and reliable.
[56]
Next, the probabilities of the divergent versions should be examined.
Although the plaintiff
initially denied an oral agreement, he changed
his version during cross-examination and agreed that the parties
entered into an
oral agreement. In view of the correspondence
between the parties and the plaintiff’s conduct subsequent to
his exit
from Soviet, his version as to the terms of the of the oral
agreement is far-fetched, to say the least.
[57]
The plaintiff admits that he informed the defendant during December
2016 that he did not have
any immediate plans and that he considers
immigrating to Australia to open a McDonalds This admission does not
tie in with the
fact that he, immediately after leaving Soviet,
joined Denim HQ and commenced in setting up the Lee Cooper brand in
direct competition
to Soviet.
[58]
Furthermore, the contents of the plaintiff’s email dated 14
March 2017, to wit “
I can assure you that my intentions are
clear regarding our agreement and I will stick with it. I am a man of
my word.”
, does not make sense. According to the
plaintiff’s version, he complied with all his obligations
during December 2016. The
question then arises, to which of his
obligations the plaintiff is referring to. At that stage, it could
only be the restraint
term.
[58]
The plaintiff could clearly not afford to have a constraint clause in
the written agreement and
utilised the defendant’s naivety and
trusting nature to make sure the restraint term does not find its way
into the written
agreement. The plaintiff clearly failed to take into
account that an oral agreement is as binding as a written agreement.
[59]
In the premises, I am satisfied that the defendant proved on a
balance of probabilities that
the parties orally agreed that the
plaintiff will not compete with Soviet.
Plaintiff’s
claim: Specific performance
[60]
In order to succeed with the claim for specific performance, the
plaintiff had to allege and
prove:
60.1
the terms of the agreement;
60.2
that he performed in terms of the contract; and
60.3
that the defendant failed to perform in terms of the contract.
[See:
Amler’s
Precedents of Pleading,
Harms, 7
th
ed, p 356]
[61]
In view of the finding that the plaintiff did not perform in terms of
the agreement between the
parties, the plaintiff has failed to prove
the requirements set out
supra
and his claim for specific
performance stands to be dismissed.
Defendant’s
counterclaim: Cancellation of the contract and restitution
[62]
In order to succeed with the claim for cancellation, the defendant
must prove:
62.1 a
breach of the contract;
62.2
that the right to cancellation has accrued because the breach was
material; and
62.3 the act
of cancellation must be clear and unambiguous.
[See:
Amler’s
Precedents of Pleading,
Harms, 7
th
ed, p 115]
[63]
Having found that it was a term of the agreement that the plaintiff
will not compete with the
Soviet brand, the plaintiff, on his own
version, breached the term by competing with the Soviet brand.
[64]
Has the right to cancel accrued? In
Singh v McCarthy Retail Ltd
t/a McIntosh Motors
[2000] ZASCA 129
;
2000 (4) SA 795
(SCA) the court stated the
following in respect of the right to cancel:
“
[13] When is a
breach, in the form of malperformance, so serious that it justifies
cancellation by the innocent party? Van der Merwe
et al Contract,
General Principles 1st ed (1993) at 255 summarises the position as
follows, with reference to decided cases and
various writers:
'The test for
seriousness has been expressed in a variety of ways, for example that
the breach must go to the root of the contract,
must affect a vital
part or term of the contract, or must relate to a material or
essential term of the contract, or that there
must have been a
substantial failure to perform. It has been said that the question
whether a breach would justify cancellation
is a matter of
judicial discretion. In more general terms the test can be expressed
as whether the breach is so serious that
it would not be reasonable
to expect that the creditor should retain the defective performance
and be satisfied with damages to
supplement the malperformance.'
[14] As long ago as
1949 it was said by this Court in Aucamp v Morton
1949
(3) SA 611 (A)
at 619
with regard to the relevant question that it was not possible to find
a simple general principle which can be applied as
a test in all
cases because contracts and breaches of contract take so many forms.
In deciding, in that case, whether the respondent
was entitled to
cancel the contract, the Court said (at 620)
'. . . nor were the
obligations which were broken so vital or material to the
performance of the whole contract that respondent
could say that the
foundation of the contract was destroyed'.
[65]
In my view, the breach in
casu,
affected a vital part of the
contract. The defendant has, therefore, established a right to cancel
the contract.
[66]
The last question is whether the act of cancellation was clear and
unambiguous. The allegations
in the counterclaim pertaining to the
aforesaid question are briefly as follows:
66.1 on
8 December 2017, the defendant wrote to the plaintiff to demand
unconditional and immediate remediation
of the breach of the
agreement;
66.2 on
11 December 2017, the plaintiff responded to defendant’s demand
by denying that he was not entitled
to compete with Soviet;
66.3
the defendant alleged that the plaintiff’s letter constituted a
repudiation of the contract, which
repudiation the defendant, in a
letter dated 14 December 2017, refused to accept. The defendant
insisted on specific performance
of the terms of the agreement;
66.4
despite the aforesaid demand, the plaintiff persisted with its breach
and the defendant has elected to cancel
the agreement forthwith.
[67]
Mr Potgieter submitted that the defendant’s election not to
accept the repudiation of the
contract by the plaintiff and to insist
on performance, precluded the defendant from cancelling the contract.
The defendant may
not approbate and reprobate.
[68]
Mr Shepstone disagreed. Mr Shepstone submitted that the plaintiff’s
repudiation of the
contract was continuous and although the defendant
did not elect to accept the initial repudiation, he was entirely
within his
rights to accept to continued repudiation and to cancel
the contract.
[69]
The question whether an aggrieved party who has elected to abide by
the contract, in the face
of persistent breach despite the
opportunity to relent, may cancel the contract, was considered and
answered in the affirmative
in
Primat Construction CC v Nelson
Mandela Bay Metropolitan Municipality
2017 (5) SA 420
(SCA).
[70]
In the result, the defendant was entitled to cancel the contract.
[71]
Pursuant to the cancellation of the contract, the defendant claims
repayment of the amount of
R 5 025 750, 00 “
subject to this
Court’s discretion to determine an equitable amount of
compensation in favour of the plaintiff in lieu of
the defendant’s
restitution excluding the plaintiff’s former directorship in
the companies.”
[72]
It is trite that a party claiming restitution when a contract has
been cancelled is obliged to
tender restitution or to provide a valid
excuse for the failure to make such a tender. Failure to do so is
fatal to such a claim.
[See:
Sackstein NO v Proudfoot SA (Pty) Ltd
2006 (6) SA 358
(SCA)].
[73]
The defendant did not present any evidence in order for this court to
determine “
an equitable amount of compensation in favour of
the plaintiff in lieu of the defendant’s restitution”.
[74]
In the result, there is no tender for restitution and the defendant’s
counterclaim stands
to be dismissed.
ORDER
The following order is
issued:
1.
The plaintiff’s claim is dismissed with costs.
2.
The defendant’s counterclaim is dismissed with costs.
N. JANSE VAN
NIEUWENHUIZEN
JUDGE OF THE HIGH
COURT OF SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
DATES
HEARD:
6-8
February 2023 &
12
May 2023
DATE
DELIVERED:
19
July 2023
APPEARANCES
For
the Plaintiff:
Advocate
MVR Potgieter SC
Instructed
by:
Senekal
Simmonds Attorneys
For
the Defendant:
Advocate
RS Shepstone
Instructed
by:
Errol
Goss Attorneys
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