High Court orders Cape businessman to return leased truck after sales agreement dishonoured
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Cape Town - A Cape Town businessman who tried to hang on to a truck after he had failed to honour a sales agreement worth R450 000 has been forced to return the truck to the seller after a judge ruled in the vendor’s favour.
In February this year, businessman André Mostert signed an agreement with Sean Jacobs in which he promised to pay for the Powerstar Beifang Benchi truck in nine monthly instalments of R50 000.
This after having changed an earlier, August 2020 agreement that had seen Mostert lease the truck from Jacobs for a monthly rental of R35 000.
A clause in the sale agreement said that Jacobs would remain the owner of the truck until the full purchase price had been paid.
Mostert failed to stick to his payment obligations and on May 6 Jacobs took repossession of the truck. His actions were however immediately reversed when Mostert appealed to the Magistrate’s Court, which ordered Jacobs to return the truck to Mostert, which he did.
Mostert’s non-payment persisted and on August 20, Jacobs demanded payment of the arrears, failing which the sale agreement would be cancelled.
This threat fell on deaf ears and so on September 23 Jacobs cancelled the sale agreement. In line with the sales agreement, cancellation meant Mostert had to return the truck, failing which he was informed a court would be approached to compel him to do so.
Mostert refused and on October 4 Jacobs issued an urgent application at the Western Cape High Court seeking an order to compel the return of the vehicle.
The hearing was set down for October 11, but on the day Mostert filed an affidavit challenging the urgency with which Jacobs approached the court.
This meant that Acting Judge Adrian Montzinger had to first decide whether the matter was urgent and, second, if urgent, whether Jacobs had made out a case for the return of his vehicle.
Ruling the matter urgent, Judge Montzinger said the court was of the view that as soon as the sale agreement was lawfully cancelled Jacobs was entitled to reclaim the truck as per the terms of the sale agreement.
“Jacobs had no other option but to approach a court urgently to protect his right.”
Mostert was given 72 hours to return the truck or the court would order a sheriff of the court to repossess it.