Case Law[2025] ZASCA 98South Africa
Van den Berg Water (Pty) Ltd t/a Oasis Water Lynnwood and Others v Oasis Water (Pty) Ltd and Another (989/2023; 988/2023; 1120/2023) [2025] ZASCA 98; [2025] 4 All SA 104 (SCA) (4 July 2025)
Supreme Court of Appeal of South Africa
4 July 2025
Headnotes
Summary: Law of Contract – franchise agreement – whether post-termination provisions enforceable – whether terms unreasonable and unjust contrary to Consumer Protection Act 68 of 2008 – interdict – appellants ordered to return printed materials related to franchise, signage, and to cease using business system and intellectual property.
Judgment
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# South Africa: Supreme Court of Appeal
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## Van den Berg Water (Pty) Ltd t/a Oasis Water Lynnwood and Others v Oasis Water (Pty) Ltd and Another (989/2023; 988/2023; 1120/2023) [2025] ZASCA 98; [2025] 4 All SA 104 (SCA) (4 July 2025)
Van den Berg Water (Pty) Ltd t/a Oasis Water Lynnwood and Others v Oasis Water (Pty) Ltd and Another (989/2023; 988/2023; 1120/2023) [2025] ZASCA 98; [2025] 4 All SA 104 (SCA) (4 July 2025)
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FLYNOTES:
INTELLECTUAL
– Return of assets –
Termination
of agreement –
Franchise
agreement – Post-termination clauses – Enforceability
– Contractual obligations to return proprietary
materials
and cease using intellectual property – Gained access to
confidential information and trade secrets during
franchise period
– No evidence that franchisees misrepresented their
rebranded business – Return of intellectual
property
obligations were clear under franchise agreements – Remained
practically enforceable – Appeals partially
allowed.
THE SUPREME COURT OF
APPEAL OF SOUTH AFRICA
JUDGMENT
Not
Reportable
Case No: 989/2023
In the matter between:
VAN
DEN BERG WATER (PTY)
LTD
FIRST
APPELLANT
T/A OASIS WATER
LYNNWOOD
CHARMAIN VAN DEN
BERG
SECOND APPELLANT
ADRIAAN VAN DEN
BERG
THIRD APPELLANT
DEON BRAAM VAN DEN
BERG
FOURTH APPELLANT
DEWALD JOHANNES VAN
DEN BERG
FIFTH APPELLANT
and
OASIS WATER (PTY)
LTD
FIRST RESPONDENT
OASIS WATER ASSET
COMPANY
SECOND RESPONDENT
(PTY) LTD
AND
Case No: 988/2023
VAN SCHALKWYK WATER CC
T/A OASIS
FIRST APPELLANT
WATER KIMBERLEY
ALBERTUS BAREND VAN
SCHALKWYK
SECOND APPELLANT
and
OASIS WATER (PTY)
LTD
RESPONDENT
AND
Case No: 1120/2023
OASIS WATER (PTY)
LTD
FIRST
APPELLANT
OASIS WATER ASSET
COMPANY (PTY) LTD
SECOND APPELLANT
and
WYNAND ALBERTUS
BESTER
FIRST RESPONDENT
JANET
BESTER
SECOND RESPONDENT
Neutral
citation:
Van den Berg
Water (Pty) Ltd t/a Oasis Water Lynnwood and Others v Oasis Water
(Pty) Ltd and Another
(Case no
989/2023);
Van Schalkwyk Water CC t/a
Oasis Water Kimberley and Another v Oasis Water (Pty) Ltd
(Case no 988/2023);
Oasis
Water (Pty) Ltd and Another v Wynand Albertus Bester and Another
(Case no 1120/2023)
[2025] ZASCA
98
(
4 July 2025
)
Coram:
SCHIPPERS, NICHOLLS, MEYER and KGOELE
JJA and PHATSHOANE AJA
Heard:
4 March 2025
Delivered:
This judgment was handed down electronically by
circulation to the parties’ representatives by email,
publication on the Supreme
Court of Appeal website and released to
SAFLII. The date and time for hand-down of the judgment is deemed to
be 11h00 on 4 July
2025.
Summary:
Law of Contract – franchise agreement – whether
post-termination provisions enforceable – whether terms
unreasonable
and unjust contrary to
Consumer Protection Act 68 of
2008
– interdict – appellants ordered to return printed
materials related to franchise, signage, and to cease using business
system and intellectual property.
ORDER
On
appeal from:
Gauteng
Division of the High Court, Pretoria (Kooverjie J, sitting as court
of first instance, case no 989/2023).
Northern
Cape Division of the High Court, Kimberley (Lever J, sitting as court
of first instance
,
case no 988/2023
).
North-West
Division of the High Court, Mahikeng (Petersen J, sitting as court of
first instance
, case
no 1120/2023
).
Case
no: 989/2023
1
The application to
adduce evidence on appeal is dismissed with costs, including the
costs of two counsel, on the party-and-party
scale.
2
The appeal succeeds in part.
3
The order of the
Gauteng
Division of the High Court, Pretoria, is set aside and replaced with
the following:
‘
1.
The first respondent is ordered to return to the first applicant all
manuals and other printed matter relating to the first
respondent’s
franchise operation, including:
1.1
manuals,
labels
or printed material containing the first applicant's names or
trademarks;
1.2
printed or electronic matter relating to the franchise operation,
previously conducted by the
first respondent under the name and style
of Oasis Water; and
1.3
client lists, or data lists.
2.
The first respondent is ordered to remove and return all ‘Oasis’
signage to the first applicant.
3.
The first respondent is ordered to cease using or exploiting the
first applicant’s ‘Oasis’ business system
and any
intellectual property owned by the first applicant, more
specifically, its know-how, trademarks, trade secrets, and
confidential
information.
4.
The respondents are ordered to pay 50% of the costs of this
application, jointly and severally, on the contractually agreed
scale
as between attorney and client, including the costs of two counsel
where so employed.’
4
Save as aforesaid, the appeal is dismissed.
There
is no order as to costs.
Case
no: 988/2023
1
The application to
adduce evidence on appeal is dismissed with costs, including the
costs of two counsel, on the party-and-party
scale.
2
The appeal succeeds in part.
3
The order of the
Northern Cape
Division of the High Court, Kimberley
,
is set aside and replaced with the following:
‘
1.
The first respondent is ordered to return to the first applicant all
manuals and other printed matter relating to the first
respondent’s
franchise operation, including:
1.1
manuals,
labels
or printed material containing the first applicant's names or
trademarks;
1.2
printed or electronic matter relating to the franchise operation
previously conducted by the first
respondent under the name and style
of Oasis Water; and
1.3
client lists, or data lists.
2.
The first respondent is ordered to remove and return all ‘Oasis’
signage to the first applicant.
3.
The first respondent is ordered to cease using or exploiting the
first applicant’s ‘Oasis’ business system
and any
intellectual property owned by the first applicant, more
specifically, its know-how, trademarks, trade secrets, and
confidential
information.
4.
The respondents are ordered to pay 50% of the costs of this
application, jointly and severally, on the contractually agreed
scale
as between attorney and client, including the costs of two counsel
where so employed.’
4
Save as aforesaid, the appeal is dismissed.
There
is no order as to costs.
Case
no: 1120/2023
1
The application to
adduce evidence on appeal is dismissed with costs, including the
costs of two counsel, on the party-and-party
scale.
2
The appeal succeeds in part.
3
The cross-appeal succeeds in part.
4
The order of the
North-West
Division of the High Court, Mahikeng
,
is set aside and replaced with the following:
‘
1.
The first respondent is ordered to return to the first applicant all
manuals and other printed matter relating to the first
respondent’s
franchise operation, including:
1.1
manuals,
labels
or printed material containing the first applicant's names or
trademarks;
1.2
printed or electronic matter relating to the franchise operation
previously conducted by the first
respondent under the name and style
of Oasis Water; and
1.3
client lists, or data lists.
2.
The first respondent is ordered to remove and return all ‘Oasis’
signage to the first applicant.
3.
The first respondent is ordered to cease using or exploiting the
first applicant’s ‘Oasis’ business system
and any
intellectual property owned by the first applicant, more
specifically, its know-how, trademarks, trade secrets, and
confidential
information.
4.
Each party shall bear their own costs.’
5
Save as aforesaid, the appeal is dismissed. There is no order as to
costs.
6
Save as aforesaid, the cross-appeal is dismissed. There is no order
as to costs.
JUDGMENT
Schippers
JA (Nicholls, Meyer and Kgoele JJA and Phatshoane AJA concurring)
[1]
The central issues in these three cases concern the meaning and
effect of post-termination provisions in a franchise agreement; and
whether the respondents, Oasis Water (Pty) Ltd (Oasis) and Oasis
Water Asset Company (Pty) Ltd (Oasis Asset Company), are entitled to
interdicts founded on those provisions. Van den Berg Water
(Pty) Ltd
t/a Oasis Water Lynwood (Van den Berg Water) and Van Schalkwyk Water
CC t/a Oasis Water Kimberley (Van Schalkwyk Water),
the first
appellants in case numbers 989/2023 and 988/2023, respectively, are
former franchisees of Oasis, the respondent in those
cases. Oasis
concluded written franchise agreements with Van den Berg Water in
2018 and with Van Schalkwyk Water in 2019, to operate
retail outlets
which sell and distribute water and related products under the name
of Oasis or Oasis Water.
[2]
In 2018 Oasis concluded franchise agreements with Mr Wynand
Albertus Bester and Mrs Janet Bester (the Besters), also former
franchisees, and the respondents in case number 1120/2023. Where
appropriate, Van den Berg Water, Van Schalkwyk Water and the Besters
are collectively referred to as ‘the franchisees’.
Factual
background
[3]
Oasis supplies bottled, filtered and purified water and other
beverages.
It has been in existence for some 20 years, was one of the
first water purifying and processing companies, and is the fourth
largest
bottled water brand in South Africa, with an estimated 60% of
the refilling market in the country. Oasis’ holding company,
Oasis Water Holdings (Pty) Ltd, is the proprietor of various
trademarks registered in terms of the Trade Marks Act 193 of 1994,
consisting of or incorporating the word ‘Oasis’.
[4]
Oasis produces its water products through a process of reverse
osmosis
and ozone treatment. It asserts that this process involves a
confidential and secret combination of selected filters combined with
ozone treatment of the water, which results in clear water that is
refreshing and free from chlorine and odours. The Oasis water
product
is also used to produce ice, sparkling and flavoured water, fruit
juices, iced teas and sports drinks.
[5]
Oasis concludes a standardised franchise agreement with its
franchisees.
By letter dated 17 February 2023, the franchisees’
attorneys, acting for a larger group of franchisees operating some 54
Oasis outlets, informed Oasis’ attorneys that Oasis had
repudiated the franchise agreements, which the franchisees had
accepted;
alternatively, that it had breached the agreements in
material respects which entitled the franchisees to cancel them (the
cancellation
letter).
[6]
A few days later, Oasis’ attorneys replied to the cancellation
letter. They denied the alleged repudiation by Oasis and contended
that the cancellation letter itself, was a repudiation of the
franchise agreement. Oasis reserved its right to either accept such
repudiation and terminate the franchise agreement or enforce
its
terms. Thus, on the version of both the franchisees and Oasis, the
franchise agreement came to an end.
[7]
After termination of the franchise agreements, the franchisees
continued
to operate a filtered and purified water business out of
the same premises, under the name of ‘Manzi Water’,
serving
the same customers. Oasis contends that they merely rebranded
their stores from Oasis Water to Manzi Water.
[8]
In March 2023 Oasis launched an urgent application against the
franchisees
in the Kimberley, Mahikeng and Pretoria High Courts. The
notice of motion in each application is substantially the same. In
Part
A, Oasis sought the following relief:
‘
2.
An
interim
order, pending the final outcome of the relief sought in
PART
B
of
the notice of motion,
in
the alternative
pending the final outcome of the relief sought in
PART
B
of
the notice of motion by arbitration proceedings:
2.1
That the First Respondent forthwith return to the First Applicant any
and all manuals and other printed matter
relating to the First
Respondent’s franchise operation, including:
2.1.1 manuals,
labels or printed material containing the First Applicant’s
names or trademarks;
2.1.2 printed or
electronic matter relating to the franchise operation which was
previously conducted by the First Respondents
under the name and
style of Oasis Water;
2.1.3 client lists,
or data lists.
2.2
That the First Respondent forthwith remove and return all “
Oasis”
signage to the First Applicant.
2.3
That the First Respondent forthwith remove and return the “
Oasis”
water purifying system to the First Applicant, consisting of the
following:
2.3.1 the reverse
osmosis purification plant;
2.3.2 the
filling/dispensing tables;
2.3.3 mobile
ozonation unit or ozone units;
2.3.4 any article
bearing trademarks.
2.4
That the First Respondent forthwith cease to use or exploit the First
Applicant’s “
Oasis”
business system and any intellectual property owned by the First
Applicant.
2.5
That the First Respondent forthwith execute all such documents and do
all such things as are necessary to
remove the name of the First
Respondent from any register relating to business names and
trademarks belonging to the First Applicant.
2.6
That the First Respondent forthwith change the appearance of the
First Respondent’s premises located
at the following places to
prevent the premises being mistaken in appearance or signage by
members of the public for an “
Oasis”
franchised business:
.
. .
2.7
That the First Respondent forthwith hand control of the First
Respondent’s franchised businesses to
the First Applicant.
2.8
That the First Respondent be interdicted and restrained from use of
the First Applicant’s business system
and intellectual
property, including the First Applicant’s know-how, copyright,
goodwill, trade dress, trademarks, trade
secrets, as well as
confidential information.
2.9
That the Respondents be interdicted and restrained from using or
displaying the Applicant’s water purification
and bottling
systems and equipment directly or indirectly as part of any business
enterprise.
2.10 that the
Respondents be interdicted and restrained from:
2.10.1
using or divulging any of the First Applicants confidential
information, trade secrets or business
model;
2.10.2
passing off the Respondents’ products and business to be that
of the Applicants;
2.10.3
using or displaying the First Applicant’s trademarks or any
printed material or poster which
contains the First Applicant’s
name, images of its products, copyrighted material or slogans;
2.10.4
making any representation or statement to any third party or member
of the public to the effect that:
(a)
the First Respondent has merely made a name change from that of the
Applicant;
(b)
the products sold by the Respondents are the same or similar as those
of the Applicants;
(c)
the business and other practices used by the First Respondent are the
same or similar as
those used by the First Applicant or any of its
franchisees;
(d)
the Respondents are entitled to sell, market and/or produce any of
the Applicants’
products and business systems;
(e)
the Respondents are in any way connected to or entitled to act on
behalf of the First Applicant.’
[9]
In prayers 2.11 to 2.14 of the notice of motion, Oasis sought an
order interdicting and restraining the franchisees from: selling its
products (prayer 2.11); using Oasis bottles or bottle caps
(2.12);
displaying any products with a sign or label that create the
impression that the franchisees’ products are those
of Oasis
(2.13); and using the Manzi Water Exchange Programme (2.14). In
prayer 3 of the notice of motion, Oasis sought an
order
enforcing the restraint of trade provisions of the franchise
agreement.
[10]
In Part B of the notice of motion, Oasis and Oasis Asset Company
sought an order that if
it is found that the arbitration provisions
in clause 18 of the franchise agreement apply to the relief sought,
that the arbitration
clause would not affect the disputes forming the
subject of the interdict applications. They also sought a final order
interdicting
and restraining the franchisees from: (i) using the
Oasis business system, know-how, copyright, trade dress, trademarks,
trade
secrets and confidential information; (ii) competing unlawfully
with Oasis; (iii) making injurious falsehoods against Oasis; (iv)
making use of Oasis Asset Company’s Water Exchange Programme
(the Exchange Programme) and the copyright, confidential information
and trademarks associated with the Programme; and (v) unlawfully
competing with Oasis Asset Company.
[11]
The franchisees opposed the applications. The grounds of their
opposition can be summarised
as follows:
(a)
The franchisees had lawfully terminated their franchise agreements,
essentially for the following
reasons. Oasis failed to comply with
the Consumer Protection Act 68 of 2008 (CPA) and the regulations made
under it, by failing
to provide management accounts relating to a
marketing fund. It implemented a ‘land grab’ strategy
which required franchisees
to acquire the stores of competitors.
Oasis acquired a controlling interest in Go-Zone, a direct competitor
in the water business,
and competed with its own franchisees. Oasis
indicated that it no longer considered the franchise model feasible
and started terminating
franchise agreements unlawfully.
(b)
By mid-February 2023, some 54 franchisees who collectively
represented nearly 25% of Oasis Water stores,
had also terminated
their franchise agreements. The applications were launched against
the franchisees because they were the instigators
of this mass exodus
of franchisees.
(c)
Apart from the Oasis trademark, Oasis and Oasis Asset Company do not
have any trade secrets, confidential
information or other
intellectual property of commercial value.
(d)
The franchisees did not unlawfully interfere with the month-to-month
contracts between Oasis Asset Company
and customers of the Exchange
Programme. In terms of this programme, customers lease a water
dispenser from Oasis Asset Company.
The lease amount includes 100
litres of water per month. The bottle used in the dispenser contains
10 litres of water and an empty
bottle can be exchanged for a bottle
of water at a participating Oasis store.
(e)
The sale of purified water by the franchisees to customers under the
Manzi brand, does not constitute
unlawful competition.
[12]
The Pretoria High Court (Kooverjie J) granted the interim interdict
sought in prayers 2.1
to 2.14 of the notice of motion in the Van den
Berg Water application, pending the outcome of the relief sought in
Part B. The
court declined to grant an order enforcing the restraint
of trade provisions. It granted Oasis costs on an attorney and client
scale as specified in the agreement.
[13]
In the application against Van Schalkwyk Water, the Kimberley High
Court (Lever J) granted
Oasis an interim interdict in terms of
prayers 2.1 to 2.13, and 3 of the notice of motion, pending the
outcome of the relief sought
in Part B. The costs of the interim
application were reserved for determination by the court dealing with
Part B of the notice
of motion.
[14]
The Mahikeng High Court (Petersen J) in the Bester application,
granted Oasis an interdict
in terms of prayers 2.1, 2.2, 2.5 and 2.6
of the notice of motion. It dismissed the application for the
remaining relief and directed
the parties to pay their own costs.
[15]
The Pretoria High Court granted Van Berg Water leave to appeal its
order to this Court.
The Kimberley High Court made a similar order in
favour of Van Schalkwyk Water. In the Bester application, the
Mahikeng High Court
granted the franchisees leave to appeal to this
Court. It also granted Oasis and Oasis Asset Company leave to
cross-appeal against
its orders refusing them relief.
The
issues
[16]
Before us, counsel for
Oasis fairly conceded that the relief sought in prayer 3 of the
notice of motion – an
interdict
restraining the franchisees from engaging in a similar operation ‘as
that of the First Applicant’s business
system’, is
aimed at restricting
competition for a limited duration – a maximum period of 12
months. The franchisees have been trading
as Manzi Water since
February 2023. It was accordingly submitted that a decision on the
order enforcing the restraint of trade
provisions contained in the
franchise agreements, would have no practical effect or result, as
envisaged in
s 16(2)
of the
Superior Courts Act 10 of 2013
.
[1]
[17]
The same applies to the interdicts granted in terms of prayers 2.7
and 2.11 to 2.14 of
the notice of motion. In terms of prayer 2.7, the
franchisees were ‘ordered to forthwith hand over control of the
franchised
businesses to [Oasis]’. These businesses no longer
exist. The interdicts granted in terms of prayers 2.11 to 2.14
likewise
will have no practical effect. In terms of these interdicts,
the franchisees were restrained from: selling any Oasis products;
selling bottled water in an Oasis bottle or using an Oasis bottle
cap; displaying products with a sign or label that create the
impression that the franchisees’ products are those of Oasis;
and using the Manzi Water Exchange Programme.
[18]
Counsel for Oasis however submitted that the orders granted in terms
of prayers 2.1 to
2.4 of the notice of motion will have practical
effect; and possibly also, the orders in terms of prayers 2.8 and
2.9. However,
prayer 2.8 – for an interdict to restrain the
franchisees from using Oasis’ business system and intellectual
property
– is a repetition of prayer 2.4, save that it is more
descriptive. In prayer 2.9, Oasis sought an interdict restraining the
franchisees from using its water purification and bottling systems
and equipment. As regards the orders granted in terms of paragraph
2.10 relating to the use of confidential information, trade secrets
and passing off, it was submitted that these orders may still
be
relevant.
[19]
Thus, the remaining issues raised by the appeals are the following:
(a)
The franchisees’ application to adduce evidence on appeal.
(b)
Whether a decision on the interdicts granted in terms of paragraphs
2.1, 2.2, and 2.4 of the notice
of motion, will have any practical
effect.
(c)
Whether the interdicts sought in terms of paragraphs 2.3, 2.9 and
2.10 of the notice of motion,
were properly granted.
(d)
Costs.
The
application to adduce evidence on appeal
[20]
The franchisees have applied to adduce substantially the same
evidence on appeal in all
three cases. This evidence essentially
comprises a list of former Oasis franchisees conducting business
under the Manzi brand as
at April 2024; a copy of a document dated 6
November 2023, showing that Oasis, in an action instituted against
the Besters in the
Mahikeng High Court, claims R1 million as a
penalty arising from a franchise agreement concluded in 2020; an
affidavit by
the franchisees’ attorney confirming the
institution of that action; and a termination letter dated 2 October
2015 sent by
Oasis to Oasis Water Table View (the 2015 letter). In
the application by the Besters to adduce evidence on appeal, they
also seek
an order that a supplementary affidavit which was
considered in the Van den Berg and Van Schalkwyk applications, be
admitted. This
however is unnecessary, since that affidavit concerns
issues that do not have to be decided on appeal.
[21]
It is trite that
the
power to admit evidence on appeal is exercised sparingly and only in
exceptional circumstances.
[2]
This
is because of the need for finality; the undesirability of
allowing a litigant who has been remiss in producing evidence,
to do
so late in the day; and the need to avoid prejudice.
[3]
The
applicant must furnish a suitable explanation for its failure to
adduce the evidence in the court below, and demonstrate that
the
evidence is reliable, weighty and material and presumably to be
believed.
[4]
[22]
The franchisees have not met these requirements. The evidence sought
to be adduced is neither
weighty nor material. The updated list of
Manzi businesses which were former Oasis franchisees, is irrelevant
to the issues decided
by the High Courts. So too, the action
instituted against the Besters in which Oasis claims payment of R1
million, and the attorney’s
affidavit confirming this. The 2015
letter, containing Oasis’ opinion as to what constitutes its
intellectual property and
protectable interests, and a statement that
it has the right to buy equipment from a franchisee upon termination
of a franchise
agreement, is likewise irrelevant. These issues must
be decided according to the terms of the franchise agreement.
[23]
Aside from this, the evidence sought to be adduced is not
substantial. Neither would it
have any impact on the outcome of the
cases. For these reasons, the application to adduce evidence on
appeal is refused with costs.
The
interdicts in paragraphs 2.1, 2.2 and 2.4 of the order
[24]
The relief sought in Part
A of the notice of motion was for interim interdicts, pending the
final outcome for the relief sought
in Part B. A preliminary issue is
whether the interdicts granted in terms of prayers 2.1 to 2.4 are
interim or final. An interim
interdict is a court order preserving
the status quo pending the final determination of the rights of the
parties. It does not
finally determine those rights.
[5]
Whether an interdict is interim or final depends on its effect on the
issue, not upon its form.
[6]
[25]
The interdicts granted in terms of prayers 2.1 to 2.4 and 2.9 of the
notice of motion,
are final in effect. In terms of these interdicts
the franchisees were ordered to return all printed matter relating to
the franchise
operation to Oasis; to return all Oasis signage and its
water purifying system; to cease using the Oasis business system and
intellectual
property; and to cease using the Oasis water
purification and bottling systems. None of these orders is directed
at preserving
the status quo, pending the determination of the relief
sought in Part B of the notice of motion. Further, these
interdicts
will not be reconsidered in deciding whether Oasis is
entitled to the relief in Part B.
[26]
Since the orders granted
in terms of prayers 2.1 to 2.4 and 2.9 are final in effect, Oasis was
required to establish a clear right;
and an issue such as the balance
of convenience does not arise.
[7]
A further consequence of their status as final interdicts is that the
Plascon-Evans
rule applies,
[8]
and disputes of fact essentially fall to be determined on the
respondents’ version, unless it is far-fetched or untenable.
[27]
Harms JA affirmed this
rule in
Zuma
:
[9]
‘
Motion
proceedings, unless concerned with interim relief, are all about the
resolution of legal issues based on common cause facts.
Unless the
circumstances are special they cannot be used to resolve
factual issues because they are not designed to determine
probabilities. It is well established under the
Plascon-Evans
rule
that where in motion proceedings disputes of fact arise on the
affidavits, a final order can be granted only if the facts
averred in
the applicant’s (Mr Zuma’s) affidavits, which have been
admitted by the respondent (the NDPP), together
with the facts
alleged by the latter, justify such order. It may be different if
the respondent’s version consists of
bald or
uncreditworthy denials, raises fictitious disputes of fact, is
palpably implausible, far-fetched or so clearly untenable
that the
court is justified in rejecting them merely on the papers.’
[28]
The founding affidavit states that the rights of Oasis to the
interdicts are founded on
the contractually agreed post-termination
rights and its common law right to protection against unlawful
competition. The post-termination
rights are contained in clause 20
of the franchise agreement, which, inter alia, provides:
‘
20.3
Upon termination of this agreement for any reason whatsoever:
20.3.1 all
rights which may have vested in the franchisee in terms of this
agreement will immediately and automatically
revert to the franchisor
and/or the franchisor’s nominee;
20.3.2 the
franchisee will return immediately to the franchisor any and all
manual and other printed matter relating
to the franchise operation,
remove and return all signage to the franchisor, as well as return of
the Oasis water purifying system,
consisting of the following:
20.3.2.1
the reverse osmosis purification plant;
20.3.2.2
the filling/dispensing tables;
20.3.2.3
mobile ozonation unit or ozone units;
20.3.2.4
any article bearing
Trade
marks
and will immediately
cease to use or exploit the
Business
system
and any
Intellectual
property
owned by the franchisor.’
[29]
Oasis submits that its rights under the franchise agreement were
infringed as follows.
After cancellation of the agreement, the
franchisees dishonestly misused the advantage they obtained as
franchisees, inter alia,
by passing off to springboard their
competing business, Manzi Water. They unlawfully retained and used
the Oasis business system,
intellectual property and the Exchange
Programme by dishonest means. They continue to provide an identical
service and product
to the same client base, from the same premises,
in the same way they did when they were Oasis franchisees, by simply
substituting
the Oasis Brand with the Manzi Brand.
[30]
The franchisees submit
that the post-termination provisions of the franchise agreement are
unenforceable, having regard to the right
of freedom of trade and
occupation in s 22 of the Constitution,
[10]
and the right to property in s 25.
[11]
They further submit that the post-termination provisions are
unenforceable as contemplated in the CPA, because they constitute
unconscionable conduct under s 40(1)
(c)
;
[12]
unfair, unreasonable or unjust contract terms under s 48(1);
[13]
and prohibited transactions under s 51(1)
(i).
[14]
[31]
The franchisees also submit that they do not have any trade secrets,
confidential information
or other intellectual property of Oasis,
which has commercial value. They say that they did not unlawfully
interfere with the month-to-month
contracts between Oasis Asset
Company and the Exchange Programme customers.
[32]
Given that an order enforcing the restraint of trade provisions in
the franchise agreements
will have no practical effect, it is
unnecessary to consider the defence that the restraint of trade
clause is unenforceable because
it infringes s 22 of the
Constitution. The same applies to the defence based on s 25 of the
Constitution, namely that the
order granted in terms of prayer 2.7 of
the notice of motion that the franchisees hand over control of their
franchised businesses
to Oasis, constitutes an arbitrary deprivation
of property.
[33]
In any
event, the constitutional defences were impermissibly raised for the
first time, on appeal.
It
is settled that a challenge based on a constitutional provision must
be properly pleaded. A party must place before the court
information
relevant to that challenge to inform the opposing party of the case
it is called upon to meet and enable it to present
factual material
and legal argument to meet that case. The opposing party must be left
in no doubt as to the nature of the case
it has to meet, and the
relief sought.
[15]
So, the
franchisees cannot rely on s 22 or s 25 of the Constitution to defeat
a claim by Oasis that they return the water purifying
system, as
sought in prayer 2.3 of the notice of motion.
[34]
I now turn to the orders granted in terms of prayers 2.1, 2.2 and 2.4
of the notice of
motion. On either parties’ version the
franchise agreement came to an end in February 2023, albeit that this
did not come
about by mutual consent. What is clear, is that the
parties expressly agreed that the termination of the agreement ‘for
any
reason whatsoever’, would trigger the rights in clause
20.3.
[35]
The franchisees undertook to immediately return
all manuals and other printed material relating to the franchise
operation, and
to remove and return all signage to Oasis, on
termination of the agreement. They failed to do so. The evidence
shows that they
continued to use the Oasis signage, stationery and
marketing material in several of their outlets.
[36]
The franchisees’ submission that they do not have any trade
secrets or confidential
information relating to the franchised
business, is unsustainable on the evidence. So too, their submission
that Oasis does not
have a business system, particular know-how or
trade secrets. These are defined in the franchise agreement, with
which the franchisees
undertook to comply.
[37]
Clause 3.11 of the agreement defines the ‘franchised business’.
It means, inter
alia, the operation of retail outlets; the franchised
business as described in the operational procedures and training
manual;
and know-how (which includes but is not limited to all
confidential, technical, commercial or business information relating
to
the use of the business system or operation of the franchised
business).
[38]
The ‘
business system’ is defined in
the franchise agreement as meaning the system of operating the
franchised business recorded
in the agreement, and/or the operational
procedures and training manual. The agreement defines ‘intellectual
property’
as including know-how, goodwill, trade dress,
trademarks and trade secrets.
[39]
This is not a case where the franchisees received confidential
information and trade secrets
in circumstances
where they ought to have appreciated that they were confidential.
Rather, the
franchisees not only expressly agreed that they
would retain as confidential, the intellectual property and business
system of
Oasis, but also that they would obtain a written
confidentiality document from their employees or agents to whom the
operational
procedures and training manual were disclosed. Van den
Berg Water concluded four franchise agreements in 2018. Van Schalkwyk
Water
concluded a renewal franchise agreement in 2019. The Besters
concluded two franchise agreements in 2019 and 2022 respectively. All
the franchisees conducted Oasis franchises until February 2023.
[40]
What is more, the cancellation letter states:
‘
Our
clients hereby undertake as follows:
a. To
remove all OASIS WATER trademarks, signage and other related OASIS
WATER brand elements from all its premises,
within a period of 7
(seven) business days from date of this correspondence;
b. To
refrain from using the OASIS WATER trademarks in future (subject to
the above grace period to remove all
signage and branding); and
c.
To refrain from using any OASIS WATER know-how or confidential
information.’
[41]
Thus, on their own showing the franchisees obtained know-how and
confidential information
as a result of the Oasis franchise. This is
consistent with their contractual undertakings to conduct the
franchise in accordance
with its operational procedures and training
manual, and to maintain the confidentiality of its business system
and intellectual
property. Oasis’ know-how, trade secrets and
confidential information, such as its
pricing
structures and margins, marketing strategies, client base records and
information, and sales strategies and marketing endeavours,
obviously
do not constitute
information easily accessible from public
sources, or information of a trivial character.
[42]
Accordingly, the franchisees’ submission that they did not gain
access to confidential
information, such as Oasis’ know-how,
business system and operational procedures, is far-fetched or clearly
untenable; and
may safely be rejected on the papers. And the evidence
shows that they did not comply with the undertaking in their
cancellation
letter. The Oasis trademark was still being used in
various outlets of the franchisees. They retained the client base
records and
information relating to operational procedures, and used
these to contact customers of Oasis, informing them that the Manzi
brand
offers the same service and quality. Indeed, this is common
ground. They used the same marketing and pricing strategies as Oasis,
in selling Manzi Water. One of the franchisees contacted a desktop
publisher used by Oasis, to design custom labels for its brand,
which
was refused.
[43]
It follows that the interdicts in paragraphs 2.1, 2.2 and 2.4 of the
order will have practical
effect. The Mahikeng High Court was correct
in granting the interdicts in paragraphs 2.1 and 2.2 of its order.
However, it erred
in not granting the interdict sought in prayer 2.4
of the notice of motion, on the ground that this relief was
inextricably linked
to the restraint of trade order sought in prayer
3 of the notice of motion. That is not so, for the reasons advanced
above.
[44]
The franchisees’ reliance on s 40(1)
(c)
of the CPA is
misplaced.
There is no evidence that Oasis used
‘coercion, undue influence, pressure, duress or harassment,
unfair tactics or any other
similar conduct’, in the conclusion
or enforcement of any of the franchise agreements. Section 51(1)
(i)
of the CPA is no longer relevant, since Oasis
concedes that an order authorising it to take control of the
franchised business,
will have no practical effect.
[45]
For the above reasons, the relief sought in paragraphs 2.1, 2.2 and
2.4 of the notice of
motion, was correctly granted by the Pretoria
and Kimberley High Courts. Consequently, the franchisees’
appeal against those
orders, is dismissed. The appeal by Oasis
against paragraph 2.4 of the order of the Mahikeng High Court
succeeds. The cross-appeal
by the franchisees against paragraphs 2.1
and 2.2 of the order of the Mahikeng High Court, is dismissed.
The
interdicts sought in prayers 2.3 and 2.9 of the notice of motion
[46]
In prayer 2.3 of the notice of motion, Oasis sought
the
return of the water purification system consisting of purification
plants, filling/dispensing tables, ozone units and articles
bearing
trademarks. Oasis rightly, does not allege ownership of this
equipment. Instead, this relief is squarely based on clause
20.3.2 of
the franchise agreement.
[47]
Clause 7.3.2 of the franchise agreement requires a
franchisee to ‘purchase all its equipment, fittings and
accessories’
from suppliers recommended by Oasis. It provides
that upon termination of the agreement for whatever reason, the
equipment, fittings
and accessories ‘can only be sold to an
existing franchisee, an approved buyer of the franchised business or
be sold to the
franchisor at its then fair market value’.
However, Oasis has not exercised the option to buy the equipment and
consequently,
has not tendered any payment for it.
[48]
The
definition of a ‘consumer’ in the CPA includes ‘a
franchisee in terms of a franchise agreement’. Section
48(1)
provides that a supplier must not conclude an agreement to supply
goods or services on terms that are unfair, unreasonable
or
unjust;
[16]
or require a
consumer to assume any obligation on such terms.
[17]
Clause 20.3.2 of the franchise agreement is a violation of these
provisions. The agreement requires the franchisees to purchase
the
Oasis water purification system; and authorises its sale to another
franchisee or to Oasis itself upon termination of the agreement.
In
either event, the franchisees would be entitled to the proceeds of
the sale. But clause 20.3.2 also grants Oasis the right to
obtain the
water purifying system and its components, free of charge, on
termination of the agreement for whatever reason. This
plainly, is a
term that is unreasonable and unjust. Apart from this, clause 20.3.2
is incurably ambiguous and falls to be construed
against Oasis, in
accordance with the
contra
proferentem
rule
(an ambiguous contract term should be construed against the drafter
of the contract).
[18]
In
short, Oasis did not make out a case for the relief sought in prayer
2.3 of the notice of motion.
[49]
The interdict sought in prayer 2.9, restrains the
franchisees from using or displaying the Oasis water purification
system and equipment
as part of any business enterprise. Oasis
presented evidence of numerous instances where the same kiosks,
refill tables, water
purification and ozonation systems as those used
by Oasis, were being used in the various outlets of the franchisees,
after the
cancellation letter had been sent. The franchisees’
however adduced evidence showing that the water purification systems
and equipment used by Oasis, are not unique; that they are widely
used in the industry; that Oasis procures these products from
third
parties; and that some franchisees purchased their purification
systems and refill tables directly from suppliers. It cannot
be said
that this evidence is plainly implausible, and any factual dispute on
this aspect falls to be determined on the franchisees’
version.
[50]
There is nothing in the franchise agreement which
suggests that Oasis supplies unique water purification and bottling
systems and
equipment to its franchisees. On the contrary,
franchisees are responsible for carrying all necessary equipment and
shopfitting,
and are required to purchase all equipment, fittings and
accessories detailed in the operational procedures and training
manual,
from suppliers recommended by Oasis. Franchisees may also
acquire equipment and accessories from any other supplier, provided
that
‘franchisor requirements or specifications are fully
adhered to’. Indeed, the answering affidavit states that there
are about four main suppliers of water purification systems; that
Oasis did not prescribe a particular system; and that franchisees
were free to choose both the system and the supplier to be used in
running the franchise. This is the clearest indication that
Oasis
does not have unique or novel water purification and bottling systems
or equipment, supplied to or required to be used by
franchisees. What
is more, equipment and accessories may be sold to a third party after
removal of the Oasis brand, if Oasis or
a franchisee is not
interested in buying them.
[51]
For the above reasons, the relief sought in paragraphs 2.3 and 2.9 of
the notice of motion,
should not have been granted by the Pretoria
and Kimberley High Courts. Consequently, the franchisees’
appeal against those
orders is upheld.
Prayer
2.10 of the notice of motion
[52]
This issue can be dealt with briefly. The relief sought in prayer
2.10 is essentially an
interdict to restrain the franchisees from
competing unlawfully with Oasis and Oasis Asset Company by using the
Exchange Programme;
and passing off their products and services as
being those of Oasis. Given that Oasis accepts that
the
franchisees
have been trading as Manzi Water since February
2023; that the order restraining the franchisees from engaging in a
similar operation
as the Oasis business system, has been
overtaken
by events; and that a
decision on that order will have no
practical effect, the relief sought in prayer 2.10 is no longer
relevant.
[53]
In any event,
the assertions in the founding
affidavit that Oasis developed a water purification process using a
secret combination of specifically
selected filters combined with
Ozone treatment of the water, has not been established in evidence.
These assertions were denied
and rebutted by the franchisees, who
presented evidence showing that Oasis does not prescribe a
combination of filters; and purified
water is produced by filtering
municipal water through a process of reverse osmosis and ozonation,
comprising six steps widely
used in the industry. And as stated,
franchisees were free to choose their water purification system.
[54]
The Exchange Programme, and specifically the allegation relating to
the development of
a 10-litre purpose-built bottle in collaboration
with Polyoak and Plastic Innovations, constitutes inadmissible
hearsay. Neither
is the 10-litre bottle sold exclusively to Oasis.
Further, the evidence shows that the Exchange Programme is neither
unique nor
innovative – it was copied from the website of Primo
Water Exchange, a firm in the United States. In addition, the
Programme
cannot be regarded as a system – the dispenser is not
unique and was bought from a third party; and several competitors of
Oasis offer a water exchange programme. Again, the version of the
franchisees on this score, is neither far-fetched nor untenable
and
must be accepted.
[55]
The
allegation that the franchisees are passing off their water shop and
Change Your Manzi business as being that of Oasis, has
likewise not
been demonstrated in evidence. The name, get-up or trademark used by
the franchisees is not reasonably likely to confuse
or deceive the
public into thinking that their goods and services emanate from
Oasis, or that there is an association between those
goods and the
services and business conducted by Oasis.
[19]
On the contrary, Oasis demonstrated in annexes to the founding papers
that the franchisees had informed consumers as follows: ‘We
are
no longer associated [with] or part of the Oasis Water Franchise
Group. We are part of a new water Retail and Distribution
Group
called MANZI (short for water in Zulu)’.
[56]
Finally on this issue, there are no facts in the
founding papers that support a case of unlawful competition in
relation to the
‘water shop business’. The high watermark
of Oasis’ case in this regard is its assertion that it
developed a
unique purification process consisting of a secret
combination of selected filters, combined with ozone treatment. As
stated, this
claim is unsustainable on the evidence.
[57]
Further,
in asserting that the franchisees are operating the same business, in
the same way and servicing the same customers, Oasis
overlooks two
crucial facts. First, the franchisees have not copied nor
appropriated an Oasis product or business values.
[20]
They are not selling Oasis water as if it were their own product.
What is being sold is municipal water, which is filtered in a
process
used by all water shops and water purification businesses, utilising
purification plants and equipment that are freely
available in the
market and sold by third parties. In addition, at a meeting in
September 2021, Oasis’ main deponent, Mr
Ignatius du Preez,
informed Mr Bester that there was nothing unique about Oasis
franchises and the only thing that differentiates
them is their
brand. Mr du Preez admits attending that meeting, but says that he
‘cannot recall’ the discussion. Second,
the business
built up by a franchisee, even in a general sense, is not the
business of the franchisor; and the customer connections
built up by
the franchisee whilst using the franchisor’s name, must be
regarded as the franchisee’s ‘property’,
subject to
the rider that cross-referred customers cannot be regarded as trade
connections built up by the franchisee.
[21]
[58]
For the above reasons, the relief sought in paragraph 2.10 of the
notice of motion, should
not have been granted by the Pretoria and
Kimberley High Courts. Consequently, the franchisees’ appeal
against this order
succeeds.
Costs
[59]
Oasis was successful in the Pretoria and Kimberley
High Courts. Its reasons for not prosecuting the appeal in relation
to the orders
in its favour in those cases, are reasonable, and due
to a change in circumstances beyond its control. Subject to what is
stated
below, there is no reason why it should be deprived of its
costs in the High Courts, on the contractually agreed scale, in case
numbers 989/2023 and 988/2023.
[60]
However, the same cannot be said of Oasis Asset
Company. Although its Exchange Programme was made available to the
franchisees,
it has no contract with them and consequently, no
entitlement to attorney-client costs. The application by both Oasis
and Oasis
Asset Company for an order in terms of prayers 2.3, 2.7,
2.9, 2.10 and 2.14 of the notice of motion, ought not to have been
granted
by the relevant High Courts. Moreover, Oasis Asset Company
failed to establish passing off or unlawful competition in respect of
its Exchange Programme. However, a separate costs order against it on
a party-and-party scale would be impractical and create confusion.
Therefore, an order that the applicants in case numbers 989/2023 and
988/2023 are entitled to 50% of their costs, is in my view,
appropriate and fair.
[61]
The Mahikeng High Court in case number 1120/2023, granted Oasis an
order only in terms
of prayers 2.1, 2.2, 2.5 and 2.6 of the notice of
motion. Although the court failed to make an order of attorney and
client costs
in terms of the franchise agreement, Oasis was not
substantially successful in those proceedings. Consequently, there is
no basis
to interfere with the costs order of the Mahikeng High
Court.
[62]
Oasis has not achieved substantial success on
appeal in case number 1120/2023. Equally, the franchisees were
largely unsuccessful
in their cross-appeal. In these circumstances,
fairness dictates that there should be no order regarding the costs
of appeal in
case number 1120/2023.
[63]
That leaves the costs of appeal in case numbers 989/2023 and
988/2023. The franchisees
lodged an appeal in these cases. It is true
that Oasis was compelled to oppose it to preserve the orders granted
in its favour.
However, this factor is not decisive. On the other
hand, the franchisees were successful in that the order in paragraph
2.3 was
overturned; and several orders which Oasis had obtained in
the High Court, such as the handing over of their businesses, passing
off, unfair competition and that they be restrained from using the
Manzi Water Exchange Programme, was not proceeded with. In the
circumstances, the appropriate order is that each party be liable for
their own costs.
Order
[64]
The following order is made:
Case
no: 989/2023
1
The application to
adduce evidence on appeal is dismissed with costs, including the
costs of two counsel, on the party-and-party
scale.
2
The appeal succeeds in part.
3
The order of the
Gauteng
Division of the High Court, Pretoria, is set aside and replaced with
the following:
‘
1.
The first respondent is ordered to return to the first applicant all
manuals and other printed matter relating to the first
respondent’s
franchise operation, including:
1.1
manuals,
labels
or printed material containing the first applicant's names or
trademarks;
1.2
printed or electronic matter relating to the franchise operation,
previously conducted by the
first respondent under the name and style
of Oasis Water; and
1.3
client lists, or data lists.
2.
The first respondent is ordered to remove and return all ‘Oasis’
signage to the first applicant.
3.
The first respondent is ordered to cease using or exploiting the
first applicant’s ‘Oasis’ business system
and any
intellectual property owned by the first applicant, more
specifically, its know-how, trademarks, trade secrets, and
confidential
information.
4.
The respondents are ordered to pay 50% of the costs of this
application, jointly and severally, on the contractually agreed
scale
as between attorney and client, including the costs of two counsel
where so employed.’
4
Save as aforesaid, the appeal is dismissed.
There
is no order as to costs.
Case
no: 988/2023
1
The application to
adduce evidence on appeal is dismissed with costs, including the
costs of two counsel, on the party-and-party
scale.
2
The appeal succeeds in part.
3
The order of the
Northern Cape
Division of the High Court, Kimberley
,
is set aside and replaced with the following:
‘
1.
The first respondent is ordered to return to the first applicant all
manuals and other printed matter relating to the first
respondent’s
franchise operation, including:
1.1
manuals,
labels
or printed material containing the first applicant's names or
trademarks;
1.2
printed or electronic matter relating to the franchise operation
previously conducted by the first
respondent under the name and style
of Oasis Water; and
1.3
client lists, or data lists.
2.
The first respondent is ordered to remove and return all ‘Oasis’
signage to the first applicant.
3.
The first respondent is ordered to cease using or exploiting the
first applicant’s ‘Oasis’ business system
and any
intellectual property owned by the first applicant, more
specifically, its know-how, trademarks, trade secrets, and
confidential
information.
4.
The respondents are ordered to pay 50% of the costs of this
application, jointly and severally, on the contractually agreed
scale
as between attorney and client, including the costs of two counsel
where so employed.’
4
Save as aforesaid, the appeal is dismissed.
There
is no order as to costs.
Case
no: 1120/2023
1
The application to
adduce evidence on appeal is dismissed with costs, including the
costs of two counsel, on the party-and-party
scale.
2
The appeal succeeds in part.
3
The cross-appeal succeeds in part.
4
The order of the
North-West
Division of the High Court, Mahikeng
,
is set aside and replaced with the following:
‘
1.
The first respondent is ordered to return to the first applicant all
manuals and other printed matter relating to the first
respondent’s
franchise operation, including:
1.1
manuals,
labels
or printed material containing the first applicant's names or
trademarks;
1.2
printed or electronic matter relating to the franchise operation
previously conducted by the first
respondent under the name and style
of Oasis Water; and
1.3
client lists, or data lists.
2.
The first respondent is ordered to remove and return all ‘Oasis’
signage to the first applicant.
3.
The first respondent is ordered to cease using or exploiting the
first applicant’s ‘Oasis’ business system
and any
intellectual property owned by the first applicant, more
specifically, its know-how, trademarks, trade secrets, and
confidential
information.
4.
Each party shall bear their own costs.’
5
Save as aforesaid, the appeal is dismissed. There is no order as to
costs.
6
Save as aforesaid, the cross-appeal is dismissed. There is no order
as to costs.
A SCHIPPERS
JUDGE OF APPEAL
Appearances:
For
appellants:
G
Kairinos SC with J Butler
Instructed
by:
Smith
& Van Wyk, Pretoria
Honey
& Partners Incorporated, Bloemfontein
For
first and second
respondents:
P G
Cilliers SC with R J Groenewald and R Modua
Instructed
by:
Adams
& Adams Attorneys, Pretoria
Phatshoane
Henney Incorporated, Bloemfontein
[1]
Section
16(2)
(a)
(i)
of the
Superior Courts Act 10 of 2013
provides:
‘
When
at the hearing of an appeal the issues are of such a nature that the
decision sought will have no practical effect or result,
the appeal
may be dismissed on this ground alone.’
[2]
S v N
1988 (3) SA 450
(A);
Ibex
RSA Holdco Ltd and Another v Tiso Blackstar Group (Pty) Ltd and
Others
[2024]
ZASCA 166
;
2025 (2) SA 408
(SCA) para 28.
[3]
Rail
Commuters Action Group and Others v Transnet Ltd t/a Metrorail and
Others
[2004] ZACC 20
;
2005
(2) SA 359
(CC),
2005 BCLR 301
(CC) (
Rail
Commuters
)
paras 41-43.
[4]
Coleman
v Dunbar
1933
AD 141
at 162 para 3, affirmed in
Rail
Commuters
fn
3 para 43.
[5]
See 11
Lawsa
2 ed
at 418 para 401 and the authorities collected in fn 1.
[6]
Apleni
v Minister of Law and Order and Others; Lamani v Minister of Law and
Order and Others
[1989]
1 All SA 71
(A);
1989 (1) SA 195
(A), affirmed in
National
Gambling Board v Premier, KwaZulu-Natal, and Others
[2001] ZACC 8
;
2002 (2) SA 715
(CC);
2002 (2) BCLR 156
(CC) para 50;
South
African Motor Industry Employers’ Association v South African
Bank of Athens Ltd
1980
(3) SA 91
(A) at 96H.
[7]
Lawsa
fn 5
para 401;
Masuku
v Minister van Justisie en Andere
1990
(1) SA 832
(A) at 840-841.
[8]
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984 (3) SA 623
(A) at
635B-C.
[9]
National
Director of Public Prosecutions v Zuma
[2009]
ZASCA 1
;
2009 (2) SA 277
(SCA);
2009 (1) SACR 361
(SCA);
2009 (4)
BCLR 393
(SCA);
[2009] 2 All SA 243
(SCA) para 26.
[10]
Section 22 of the Constitution provides:
‘
Freedom
of trade, occupation and profession
Every
citizen has the right to choose their trade, occupation and
profession freely. The practice of a trade, occupation or profession
may be regulated by law.’
[11]
Section
25 of the Constitution states, inter alia:
‘
Property
(1)
No
one may be deprived of property except in terms of law of general
application, and no law may permit arbitrary deprivation
of
property.
[12]
Section
40(1)
(c)
of
the CPA provides:
‘
(1)
A supplier or an agent of the supplier must not use physical force
against a consumer, coercion, undue influence, pressure,
duress or
harassment, unfair tactics or any other similar conduct, in
connection with any-
.
. .
(c)
negotiation,
conclusion, execution or enforcement of an agreement to supply any
goods or services to a consumer.’
[13]
Section
48(1) of the CPA states:
‘
(1)
A supplier must not-
(a)
offer
to supply, supply, or enter into an agreement to supply, any goods
or services-
(i) at
a price that is unfair, unreasonable or unjust; or
(ii) on
terms that are unfair, unreasonable or unjust;
(b)
market
any goods or services, or negotiate, enter into or administer a
transaction or an agreement for the supply
of any goods or services,
in a manner that is unfair, unreasonable or unjust; or
(c)
require
a consumer, or other person to whom any goods or services are
supplied at the direction of the consumer-
(i) to
waive any rights;
(ii) assume
any obligation; or
(iii) waive
any liability of the supplier,
on
terms that are unfair, unreasonable or unjust, or impose any such
terms as a condition of entering into a transaction.’
[14]
Section 51(1)
(i)
of the
CPA provides:
‘
(1)
A supplier must not make a transaction or agreement subject to any
term or condition if-
.
. .
(i)
it
expresses, on behalf of the consumer-
(i) an
authorisation for any person acting on behalf of the supplier to
enter any premises for the purposes of
taking possession of goods to
which the agreement relates;
(ii) an
undertaking to sign in advance any documentation relating to
enforcement of the agreement, irrespective
of whether such
documentation is complete or incomplete at the time it is signed; or
(iii) a
consent to a predetermined value of costs relating to enforcement of
the agreement, except to the extent
that is consistent with this
Act.’
[15]
Prince
v President of the Law Society of the Cape of Good Hope and Others
2002 (2) SA 794; 2002
(3) BCLR 231 (CC); 2002 (1) SACR 431 (CC).
[16]
Section
48(1)
(a)
(ii)
of the CPA.
[17]
Section
48(1)
(c)
(ii)
of the CPA.
[18]
Cairns
(Pty) Ltd v Playdon & Co, Ltd
[1948]
3 All SA 107
,
1948 (3) SA 99
(A) at 122-3; R H Christie and G B
Bradfield
Christie’s
Law of Contract in South Africa
8
ed (2022) at 277-278.
[19]
Williams
t/a Jenifer Williams & Associates and Another v Life Line
Southern Transvaal
[1996] ZASCA 46
;
1996
(3) SA 408
(A) at 418F-H.
[20]
Taylor
& Horne (Pty) Ltd v Dentall (Pty) Ltd
1991
(1) SA 412
(A) at 421F-G.
[21]
U-Drive
Franchise Systems (Pty) Ltd v Drive Yourself (Pty) Ltd and Another
1976
(1) SA 137
(D) at 142E-G. Although this was said in the context of a
restraint of trade agreement, the position is in principle no
different
in relation to unlawful competition.
sino noindex
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