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ARTICLE · 01 MARCH 2024

Case Development: Can You Revive A Failed Agreement?

Swart Attorneys
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The answer to this question was surprisingly nuanced by the Johannesburg High Court in its judgment for the Compu-Cool Consulting v Silver Dawn Investments 168 CC and Others (unreported) handed down on...

South AfricaLitigation, Mediation & Arbitration
Steven Stuart-Steer
Steven Stuart-Steer

The answer to this question was surprisingly nuanced by the Johannesburg High Court in its judgment for the Compu-Cool Consulting v Silver Dawn Investments 168 CC and Others (unreported) handed down on 3 September 2021.

It appears from this case that our courts may not accept a simple addendum to a lapsed agreement as being able to validly revive and reinstate a lapsed agreement due to a non-fulfilment of its suspensive conditions. To be effective, such document needs to contain very specific language to indicate a clear intention that a new agreement is being concluded which incorporates by reference the failed agreement with necessary changes.

The facts

The parties to the dispute in this case had entered into a written deed of sale for immovable property in terms of which Compu-cool (Pty) Ltd ("Purchaser") would purchase from Silver Dawn Investments 168 CC ("Seller") its rental property located at a key industrial node in Kya Sands en route to

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