Royal Energy Management Services (Pty) Ltd v Carse N.O (6426/2021)  ZAWCHC 241 (23 November 2021)
A sells his Ferrari to B who happily puts down a 40% deposit. B approaches the bank for a short term loan for the balance but the loan is not forthcoming. B prods A to return the deposit, relying on the general principle in our law that, upon the failure of an agreement, parties must restore each other to the position they were in before their agreement. In other words, return the deposit! This judgment relates to the purchase of a farm for some R17million. With the loan for the balance not approved, the purchaser had to institute proceedings for return of the deposit. This because the seller argued that the agreement’s provision regarding the purchaser’s obligation to provide a guarantee for the balance, was a term of the agreement that the purchaser had breached. Not so simple, said the court.