South Africa and global insurance, financial institutions, banking and general law know–how
This blog was co-authored by Adrienne Hendricks, Trainee Associate and Adriaan Lourens, Candidate Attorney.
A company entered into a suretyship agreement with the respondent, who bound himself as surety to the company. The company claimed the outstanding sum plus interest from the surety.
The surety alleged that he did not recall having bound himself as…
This blog was co-authored by Adrienne Hendricks (Trainee Associate).
An insurance company entered into a financial service agreement with the first respondent close corporation. The second respondent bound herself as surety and co-principal debtor to the insurance company through a deed of suretyship. Pursuant to the deed of suretyship, the insurance company sought payment from…
This blog was co-authored by Adrienne Hendricks, Trainee Associate and Adriaan Lourens, Candidate Attorney.
The Supreme Court of Appeal recently reaffirmed the principle that a contracting party exercising unilateral discretion must do so in good faith, with reasonable judgment, and without arbitrariness (the arbitrio boni viri principle).
A major retail franchisor and its franchisee entered…
In January 2025, the High Court handed down a judgment outlining once again the nature of performance guarantees and the legal principles governing their enforcement.
Two agreements were concluded wherein the beneficiary appointed the applicant to provide road rehabilitation services to it. Performance guarantees were issued to the beneficiary by the insurer on behalf of…
In December 2024, the High Court held that reasons for non-performance are irrelevant considerations when a guarantor claims payment under counter-indemnities and suretyships executed in its favour.
The applicant insurer issued a guarantee in favour of a beneficiary on behalf of a contractor who was constructing a water pipeline for the beneficiary. The guarantee secured…
This blog is co-authored by Hannah Howell, candidate attorney.
In October 2024 the high court dismissed the defence of reckless lending contemplated in Section 81(2) of the National Credit Act, 2005 (the NCA) because the creditor under the indemnity was not a credit provider under the Act.
The applicant and the bank concluded a home…
This blog was co-authored by Shay Roper, Candidate Attorney.
The case of Merchant Commercial Finance 1 (Pty) Ltd t/a Merchant Factors v Valoworx 33 CC and Others highlights the importance of a creditor, seeking a monetary judgment, to determine and reflect the capital sum and interest payable, in the affidavit and certificate of balance in…
This blog was co-authored by Hannah Howell, Candidate Attorney.
In October 2024 the Supreme Court of Appeal ruled that an agreement for the purchase of immovable property could not be revived by an addendum to the existing agreement. A new agreement is required subsequent to the lapse of a suspensive condition contained in the agreement.
This blog was co-authored by Adrienne Hendricks (Candidate Attorney).
In two recent High Court judgements (First Rand Bank Limited v Initiative for Specialised Resource Management and Billion Property Developments v Nevzomark), the court considered whether initialling a suretyship agreement complies with the signature requirement in Section 6 of the General Law Amendment Act…
In October 2024 the High Court reaffirmed the rules governing demand and conditional guarantees in South Africa, and the standards required to challenge a demand on the grounds of fraud only in the clearest cases.
The second respondent (the employer) awarded a contract to the applicants (the JV) to upgrade certain roads. The JV had…
