Eastern Cape Motors (Pty) Ltd purchased a 2012 Volkswagen Transporter from Stu Davidson and Sons (Pty) Ltd as a trade-in when Davidson bought a new Ford Ranger. The agreed trade-in price was R245 000. The trade-in declaration contained a warranty that the vehicle had not been involved in a substantial or major accident affecting resale value. After taking the vehicle, Eastern Cape Motors was unable to resell it and discovered that it had previously been involved in a major accident, had been written off by Volkswagen, and that the manufacturer’s warranty had been cancelled. Eastern Cape Motors eventually resold the vehicle for R150 000, suffering a loss of R95 000, and sued for damages for breach of warranty. Davidson counterclaimed for rectification of the contract, alleging that the declaration did not reflect the parties’ true intention.