A FRIENDLY ‘BUY BACK’ NOT ALWAYS A ‘SALE’ THAT REQUIRES A WRITTEN AGREEMENT TO BE VALID
Loggenberg and Others v Maree (286/17)  ZASCA 24 (23 March 2018)
The facts in this judgment tells a story of A, in an attempt to assist his friend B, that bought B’s property in an execution sale with the understanding that B will buy it back shortly after, when his finances improve. A subsequently sold the property to C and B approached the Court for assistance. A argued that the buy-back was a sale agreement of land and was invalid as it was agreed to orally. He was thus free to sell to C. The Court found that it rather resembled an oral agreement for the benefit of a third (stipulatio alteri) and a written recordal was not necessary.
STBB’s STSMA REFERENCE GUIDE
In this, the fifty-second set of notes for your STSMA Reference Guide, Prescribed Management Rule 31 is discussed.
Prescribed Management Rule 31
(N.B. Print in landscape)