In the case of Richard Pollack (NO) and Others v Peacock Inn (Pty) Ltd, the purchaser breached the agreement of sale by not making timeous payment of the deposit nor the occupational rental due in accordance with the signed agreement of sale.
Due to this breach, the seller formally placed the purchaser on terms and demanded proper performance as set out in the agreement. After receipt of the letter of demand, the purchaser made a substantial payment towards the outstanding deposit and occupational rent, but ultimately fell short of paying the full amount due.
Consequently, the seller cancelled the agreement of sale.
The question before the court was whether the seller was entitled to cancel the agreement of sale and evict the purchaser after such a substantial contribution was made towards the outstanding amounts.
The Court held that the right to evict an occupant once their right to occupy the property has come to an end, is not trumped by belated payments. The Court also upheld the principle of parties to a contract must be held to their obligations and that the court must exercise its own discretion in deciding whether to grant an eviction order or not.
As such, the Court in this matter ruled that the seller acted rightfully in terminating the agreement of sale and consequently evicting the purchaser.