Bastian Financial Services (Pty) Ltd v General Hendrik Schoeman Primary School

A public primary school entered into a written five-year lease agreement with Bastian Financial Services (Pty) Ltd for photocopier equipment used in educational activities. The school failed to pay the instalments due under the agreement. The supplier cancelled the contract and sued the school in the magistrate’s court for, inter alia, payment of the total rentals that would have been payable for the full contract period. The school raised a special plea based on section 60(1) of the South African Schools Act 84 of 1996, contending that the State, represented by the MEC for Education, was liable for the claim and that the school itself could not be sued. The magistrate’s court upheld the special plea, and the Pretoria High Court confirmed that decision. The supplier appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The orders of the magistrate’s court and the High Court upholding the special plea were set aside, and the school’s special plea based on section 60(1) was dismissed, allowing the contractual claim against the school to proceed.

This case is a leading authority on the interpretation of section 60 of the South African Schools Act. It clarifies the distinction between delictual and contractual liability of public schools and confirms that the State is not liable for contractual damages arising from agreements lawfully concluded by public schools. The judgment reinforces school autonomy and provides legal certainty to parties contracting with public schools.