The appellant entered into a five-year fixed-term employment contract with the City of Johannesburg as Senior Human Resources Manager at a remuneration of R550 000 per annum (the first contract). Shortly thereafter, the City informed her that the official who concluded the contract lacked authority to offer that salary and presented a second contract identical in all respects except for reduced remuneration of R453 296 per annum. The appellant accepted and performed under the second contract while stating that she reserved her rights arising from the first contract. Approximately 18 months later, she instituted action seeking specific performance of the first contract, claiming payment of the higher remuneration for the full five-year term. During the proceedings, she conceded that the first contract had been cancelled and that she had accepted the second contract, and she later resigned from the City’s employ.
The appeal was dismissed with costs, and the Labour Court’s order granting absolution from the instance was confirmed.
The case restates and reinforces the doctrine of election in South African contract and labour law, confirming that cancellation and enforcement of a contract are mutually exclusive remedies. It underscores the necessity for litigants to plead alternative remedies properly and clarifies the circumstances in which absolution from the instance is appropriate in labour disputes involving contractual claims.