SALE AGREEMENT ‘STANDARD’ WARRANTY: APPLICABLE TO PERSON SIGNING O.B.O. A TRUST?
Goldex 16 (Pty) Ltd v Capper NO and Others (24218/2013) [2017] ZAGPJHC 305 (18 October 2017)
The facts of this matter make for a textbook example of things that can go awry when the basic requirements of dealing with a trust as a party to a transaction are not adhered to. The sale agreement was void as the trust’s representative signed it without first obtaining the written authority to do so from the other trustee. The seller then sought to hold the trustee, in his personal capacity, bound to the agreement by relying on the ‘usual’ warranties clause contained in agreements pertaining to natural persons signing on behalf of entities (i.e. that the signatory warrants that he is “authorised to enter into the agreement on behalf of the trust, that all conditions had been complied with by the trust in order to make the agreement binding,” and so forth). Could he do so?
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The Judgment
Summary of the Judgment
STBB’S STSMA REFERENCE GUIDE
In this, the forty-third set of notes for your STSMA Reference Guide, Prescribed Management Rule 22 is discussed.
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Prescribed Management Rule 22
(N.B. Print in landscape)