Millennium Waste Management (Pty) Ltd v Sol Plaatje Municipality

The Sol Plaatje Municipality issued an invitation for proposals in January 2006 for the operation of the Kimberley and Ritchie Waste Disposal Site. Millennium Waste Management (Pty) Ltd submitted a tender that was found to be responsive. On 25 July 2007, the Municipal Manager notified Millennium Waste that its tender had been accepted and indicated that further arrangements would be made to finalise logistical aspects of the contract. Millennium Waste alleged that it took possession of the site on 1 October 2007 and rendered services, invoicing the Municipality. When the Municipality refused to pay, Millennium Waste sued in the Northern Cape Division of the High Court, claiming payment based on an alleged contract. The High Court absolved the Municipality from the instance, and the full court dismissed the appeal. Millennium Waste then appealed to the Supreme Court of Appeal with special leave.

The appeal was struck from the roll with costs.

The case reaffirms South African contract law principles that an agreement to agree is unenforceable and that acceptance of a tender does not necessarily result in a binding contract where further negotiations and formalisation are expressly contemplated. It also clarifies the strict approach of the Supreme Court of Appeal to special leave to appeal, emphasising that something more than reasonable prospects of success is required.