Goldex 16 (Pty) Ltd v Capper NO and Others

Goldex 16 (Pty) Ltd entered into a written agreement on 24 January 2013 with the Des Property Trust for the sale of a real right of extension in a sectional title scheme for R1.45 million. The agreement was signed by Mr Dene Capper, purporting to act on behalf of the trust. The agreement failed to comply with the Alienation of Land Act 68 of 1981 and was void ab initio. In addition, Mr Capper lacked authority from a co-trustee to conclude the agreement. Goldex abandoned its claim for specific performance against the trust but pursued a claim against Mr Capper personally, alleging breach of warranties in the agreement and seeking payment of the purchase price against transfer of the property to him.

The appeal was dismissed with costs.

The case clarifies that warranties of authority in contracts involving trusts do not, without clear wording, render the signatory personally liable for performance of a void contract. It reinforces the strict consequences of non-compliance with the Alienation of Land Act and limits attempts to circumvent invalidity by recasting claims as damages or warranty enforcement.