Nationwide Airlines (applicant) is a national airline operating domestic and international routes, including a London route using Boeing 767 (B767) aircraft. The first respondent, Andreas Roediger, was a professional pilot employed by the applicant. In April 2004, the parties entered into a loan agreement whereby the applicant advanced R175,000 to the first respondent to enable him to complete training to qualify as a B767 captain. Under clause 5.3 of this agreement, once employed as captain, the first respondent was obliged to give three calendar months' notice of termination. On 3 October 2005, the first respondent gave written notice terminating his services effective 3 November 2005 (one month's notice). The applicant contended this notice was ineffective as it violated the three-month notice period agreed upon. The first respondent relied on an unsigned "memorandum of employment" document claiming it entitled him to give shorter notice, and argued that specific performance of employment contracts should not be granted. The second respondent, Air Mauritius, was joined as an interested party.