Crookes Brothers Limited v Regional Land Claims Commission for the Province of Mpumalanga and Others

Crookes Brothers Limited sold 15 immovable properties in Mpumalanga to the Government of the Republic of South Africa, represented by the Regional Land Claims Commission and the National Department of Land Affairs, for R200 million. The sale occurred while land restitution claims under the Restitution of Land Rights Act 22 of 1994 were pending. The written agreement required the purchaser to furnish a written undertaking (guarantee) within 14 days of request and to pay the purchase price within 10 days after transfer. Despite demand, the respondents failed for many months to provide the undertaking, citing lack of funds. This prevented transfer and delayed payment. The purchase price was only paid on 5 July 2010. Crookes Brothers claimed mora interest for the delay.

The appeal succeeded with costs. The High Court order was set aside and replaced with an order directing the respondents, jointly and severally, to pay Crookes Brothers Limited R22,761,643.85 in mora interest, further interest at 15.5% per annum from 6 July 2010 to date of payment, and costs including the costs of two counsel.

The case affirms that mora interest is automatically payable once a debtor is in mora and that a creditor need not prove actual financial loss. It clarifies that a debtor cannot rely on its own breach to delay performance and escape interest liability, reinforcing contractual certainty and the proper application of mora interest in South African contract law.