Half truths render tenant liable for landlord damages
Superstrike Investments 53 (Pty) Ltd v Siyakha Management Services (Pty) Ltd and Others (2006/2035) [2015] ZAGPJHC 78 (29 April 2015)
During lease agreement negotiations, the prospective anchor tenant intimated that it was a Fruit & Veg City franchisee and instructed the landlord to erect premises to Fruit & Veg’s specifications. When the franchise director of Fruit & Veg objected to the location of the intended store, it transpired for the first time that this consent was a prerequisite for the tenant contracting. In the ensuing litigation, the court was asked to determine whether there was a fraudulent misrepresentation rendering the tenant liable for damages suffered as a result of the cancellation of the lease agreement. The outcome illustrates the risks of not playing open cards.
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The Judgment
Summary of the Judgment
Business rescue potential even after final liquidation order
Richter v Absa Bank Limited (20181/2014) [2015] ZASCA 100 (01 June 2015)
At first glance it may seem odd that business rescue can be initiated even after a final liquidation order has been issued for a company. The court here however clarified that the liquidation process is only finalised once the entity is deregistered. As such, the Companies Act allows for a business rescue application to be brought at any time before finalisation of the liquidation process. A potential lifeline for struggling entities running out of time to secure an upturn, although real concerns exist for the administration of liquidations as a result.
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The Judgment
Summary of the Judgment
