The Case Of Missing Formalities – Why Youmessi Trading CC v Simphunzi Is Important

Introduction

In this case, the plaintiff and the defendant entered into a sales agreement to sell a tertiary institution, Hartwick Technical College (a "college"). They agreed on a price for the college (R700 000), and at the time of the sales agreement, the lease of the premises was in the name of the plaintiff. According to the plaintiff, he and the defendant entered into a verbal agreement for the defendant to let from him.

They further apparently agreed that the lease would be reduced as soon as he paid a certain amount of the purchase price. Some of the material terms of the alleged lease as pleaded by the plaintiff were that the defendant would pay to the plaintiff R30 000.00 per month in advance until the sum of R400 000.00 being part payment of the purchase price for the college due on the 1 April 2015 was paid. After the sum of R400 000.00 would have been paid the monthly rental was to be reduced to R25 000.00 per month.