The full bench of an appeal court in the Pretoria High Court held that the claimant’s claim had prescribed three years after the contract was entered into despite there being a suspensive condition which has not fulfilled till four months after the agreement was entered into. Contracts with suspensive conditions should therefore specifically deal with
The full bench of an appeal court in the Pretoria High Court held that the claimant’s claim had prescribed three years after the contract was entered into despite there being a suspensive condition which has not fulfilled till four months after the agreement was entered into. Contracts with suspensive conditions should therefore specifically deal with
A builder submitted a tender to the Development Bank of Southern Africa (DBSA) for construction of a school. The tender was ‘conditionally accepted’ and further documents had to be submitted by a deadline date after which the construction contract would be signed. The documents were not submitted in time nor was the construction contract signed.
The courts have reaffirmed that if suspensive conditions in an agreement are not fulfilled timeously the agreement will not be binding on the parties. This is not cured by either party performing in terms of the agreement.
Suspensive conditions and how they must be fulfilled must be precisely and carefully drafted.
Facts of the case