Eastern Cape Motors (Pty) Ltd v Cornelius Johannes Wolmerans

The appellant, a motor vehicle dealership, sold a pre-owned Toyota Aygo to the respondent, a retired police officer, under a written contract concluded on 14 March 2022. The respondent traded in his Mitsubishi Pajero, which he represented verbally and in writing as a 2013 model, and which the appellant valued at R140 000 as a deposit. After delivery of the Toyota, the appellant discovered from the registration certificate that the Mitsubishi was in fact a 2005 model, worth only R80 000. The appellant claimed damages of R60 000 based on breach of contractual warranties relating to the correctness of the year model. The Magistrates’ Court dismissed the claim with punitive costs against the appellant, prompting this appeal.

The appeal was upheld. The Magistrates’ Court order was set aside and substituted with judgment in favour of the appellant for payment of R60 000, interest from 5 February 2024 to date of final payment, and costs of suit on an attorney and own client scale. The respondent was ordered to pay the costs of the appeal on a party and party scale.

The case reinforces foundational principles of South African contract law, including the binding nature of warranties, the caveat subscriptor rule, and pacta sunt servanda. It underscores the constitutional importance of pleadings in civil litigation and cautions lower courts against deciding cases on unpleaded issues. The judgment also clarifies that good faith, trust, and consumer protection considerations cannot displace clear contractual terms absent proper pleading and evidential foundation.