VALID CANCELLATION REQUIRES MORE THAN STATING THAT ANOTHER IS IN BREACH
Smith and Another v Patsalosavis and Another (85341/2014) [2017] ZAGPJHC 230(11 August 2017)
Procedural ‘formalities’ often crystallize from lessons learnt in everyday transacting. For the cancellation of agreements, unless stipulated otherwise, formalities dictate that the defaulting party must be given clear details of the alleged breach, be afforded a timeframe in which to rectify it, and must be advised of the other party’s right to elect, on a failure to rectify the breach, whether to keep the defaulting party to the agreement or to cancel it (and claim damages). This must be followed with a formal cancellation, if the breach is not addressed. This supports an understanding of the “why” and “how to” when things go wrong. Non-compliance with these rules is problematic, as this judgment shows.
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The Judgment
Summary of the Judgment
STBB’S STSMA REFERENCE GUIDE
In this, the thirty-eighth set of notes for your STSMA Reference Guide, Prescribed Management Rule 17 is discussed.
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Prescribed Management Rule 17
(N.B. Print in landscape)
