The Commercial Case Law Index is a collection of judgments from African countries on topics relating to commercial legal practice. The collection aims to provide a snapshot of commercial legal practice in a country, rather than present solely traditionally "reportable" cases. The index currently covers 400 judgments from Uganda, Tanzania, Nigeria, Ghana and South Africa.
Get started on finding judgments that are relevant to you by browsing the topic list on the left of the screen. Click the arrows next to the topic names to reveal a detailed list of sub-topics. Most judgments are accompanied by a short summary written by subject-matter expert postgraduate students from the University of Cape Town.
The appellant claimed that a letter in dispute was not a contract but a proposal which outlined the services the respondent intended to render and the billing details. The court considered whether the statement of claim by the respondent disclosed a reasonable cause of action based on a binding contract. The other issue was whether the costs granted in the lower court were justifiable.
The court held that there must be a cause of action cognizable in law. In that light, an action founded on a contract must disclose the cause of action and court must restrict itself to the averments in the statement of claim. The court also held that costs follow the events and are compensatory in the court's discretion.
The court did not determine the existence of the contract because a valid and enforceable contract is a substantive issue that should be determined at trial. The court also found that since the requisite factual elements were present in the statement of claim, a cause of action existed despite weaknesses and unlikelihood of success of the case. The court also found that the trial court awarded the costs reasonably and by the law.
Accordingly, the court dismissed the appeal.