Beadica 231 CC and Others v Trustees for the time being of the Oregon Trust and Others (CCT109 /19) [2020] ZACC 13(17 June)
In recent times, there has been increasing debate and court judgment dealing with the question whether an agreement between two reasonable business persons is at risk of being invalidated by invoking unreasonableness, unfairness and public policy considerations, viewed against the background of legal certainty and pacta sunt servanda (the principle that contracts freely entered into between parties must be honoured and, if necessary, enforced by the courts). This judgment deals with a franchisee’s application not to be evicted from premises after it failed to timeously renew a lease agreement. The Constitutional Court confirmed that contracts will generally be upheld and enforced but that the law will, in so doing, not lose sight of the fact that good faith, ubuntu and public policy all play an important role in contractual dealings.
The Judgment can be viewed here.
The Judgment
Summary of the Judgment |