Loggenberg N O and Others v Maree

The Loggenberg family lived and farmed on Weltevreden, a farm previously owned by a family trust. Due to financial difficulties and execution proceedings, the respondent, Mr Maree (an attorney and friend), purchased the farm at a sale in execution in 2011. According to the appellants, an oral agreement was concluded in terms of which Mr Maree would buy the farm on behalf of a trust to be formed (the Chacoranja Trust), hold it in his name, and later transfer it to the trust once it reimbursed him for acquisition costs and repaid outstanding loans. The trust was subsequently formed and accepted the alleged benefit. Mr Maree later sold the farm to a third party, prompting the trustees to sue for enforcement of the oral agreement. Mr Maree raised an exception, contending that the oral agreement was an invalid sale of land under the Alienation of Land Act 68 of 1981 and was void for vagueness.

The appeal succeeded. The High Court order was set aside and replaced with an order striking out prayers 1 and 2 of the particulars of claim, dismissing the exception to prayer 3 and the vagueness exception, directing each party to pay its own costs in the High Court, and remitting the matter to the High Court for trial. Costs on appeal were awarded to the appellants.

The case clarifies that not all oral arrangements involving later transfer of land constitute sales subject to the Alienation of Land Act. It affirms that agreements where one party purchases property on behalf of another or a trust, holding it pending transfer, may be enforceable and fall outside section 2(1). The judgment also reiterates the cautious approach courts must take when deciding issues of vagueness on exception.