In 1973, Cape Explosive Works Ltd (Capex) sold two immovable properties to Armscor. The deed of sale contained clause 6 (restricting use to armaments development and manufacture) and clause 7(a) (granting Capex a first right to repurchase if the properties were no longer required for that use). These were registered as conditions 1 and 2 in Deed of Transfer T40652/1974, expressed to be binding on Armscor and its successors in title. Through subsequent property transactions (consolidations, excisions, and transfers), the properties were transformed and eventually transferred to Denel (Pty) Ltd. During this process, condition 2 was erroneously omitted from subsequent title deeds, and condition 1 was stated to apply only to a very small portion of the land. A dispute arose when Denel claimed it was not bound by condition 2. Capex applied for rectification of the title deeds to include the conditions.