Kilburn v Estate Kilburn

Last updated

Kilburn Appellant v Estate Kilburn Respondent, [1] an important case in South African property law, was heard in the Appellate Division [2] on 15 and 29 September, 1931.

Contents

Facts

For a mortgage to be valid, there must be a legal or natural obligation to which the hypothecation is accessory. In Kilburn, a husband had, before his marriage, passed and registered a notarial bond for £500 as a second charge on all his property in favour of his wife.

Judgment

The court found as a fact that, although the bond purported to secure a sum of £500 which the husband had verbally promised to pay his wife, it was not a serious promise, and there was therefore no intention to pay that sum. The intention of the spouses, in agreeing to the notarial bond, was only to give a preferential claim on the sum if the husband were to be declared insolvent.

The principal debt was invalid, and so, in turn, was the notarial bond. As, therefore, there was no legal obligation secured by the bond, the wife could not, on the insolvency of her husband, claim in a concursus creditorum on the bond. The decision of the court a quo (in the Natal Provincial Division) in Kilburn v Estate Kilburn was thus confirmed.

See also

Related Research Articles

A legal fiction is a fact assumed or created by courts, which is then used in order to help reach a decision or to apply a legal rule.

<i>Foakes v Beer</i>

Foakes v Beer[1884] UKHL 1 is an English contract law case, which applied the controversial pre-existing duty rule in the context of part payments of debts. It is a leading case from the House of Lords on the legal concept of consideration. It established the rule that prevents parties from discharging an obligation by part performance, affirming Pinnel's Case (1602) 5 Co Rep 117a. In that case it was said that "payment of a lesser sum on the day [i.e., on or after the due date of a money debt] cannot be any satisfaction of the whole."

Assignment is a legal term used in the context of the laws of contract and of property. In both instances, assignment is the process whereby a person, the assignor, transfers rights or benefits to another, the assignee. An assignment may not transfer a duty, burden or detriment without the express agreement of the assignee. The right or benefit being assigned may be a gift or it may be paid for with a contractual consideration such as money.

<i>Balfour v Balfour</i> 1919 English contract law case

Balfour v Balfour [1919] 2 KB 571 is a leading English contract law case. It held that there is a rebuttable presumption against an intention to create a legally enforceable agreement when the agreement is domestic in nature.

An unfair preference is a legal term arising in bankruptcy law where a person or company transfers assets or pays a debt to a creditor shortly before going into bankruptcy, that payment or transfer can be set aside on the application of the liquidator or trustee in bankruptcy as an unfair preference or simply a preference.

<i>Beswick v Beswick</i>

Beswick v Beswick[1967] UKHL 2, [1968] AC 58 was a landmark English contract law case on privity of contract and specific performance. The Lords, overruling the decision of Lord Denning in the Court of Appeal, ruled that a person who was not party to a contract had no independent standing to sue to enforce it, even if the contract was clearly intended for their benefit.

In law, set-off or netting is a legal technique applied between persons or businesses with mutual rights and liabilities, replacing gross positions with net positions. It permits the rights to be used to discharge the liabilities where cross claims exist between a plaintiff and a respondent, the result being that the gross claims of mutual debt produce a single net claim. The net claim is known as a net position. In other words, a set-off is the right of a debtor to balance mutual debts with a creditor.

Flagg v. Walker, 113 U.S. 659 (1885), regards a case where the deeds for several parcels of land were transferred from Flagg, who was in financial difficulty, to Walker in return for paying off Flagg's debts and profits from the sale against a mortgage for other property owned by Flagg.

<span class="mw-page-title-main">Baltic Shipping Company v Dillon</span> Judgement of the High Court of Australia

Baltic Shipping Company v Dillon, the Mikhail Lermontov case, is a leading Australian contract law case, on the incorporation of exclusion clauses and damages for breach of contract or restitution for unjust enrichment.

<i>Errington v Wood</i>

Errington v Wood[1951] EWCA Civ 2 is an English contract law and English land law judicial decision of the Court of Appeal concerning agreement and the right to specific performance of an assurance that is relied on.

<span class="mw-page-title-main">South African property law</span> Important aspects of redistribution agreement

South African property law regulates the "rights of people in or over certain objects or things." It is concerned, in other words, with a person's ability to undertake certain actions with certain kinds of objects in accordance with South African law. Among the formal functions of South African property law is the harmonisation of individual interests in property, the guarantee and protection of individual rights with respect to property, and the control of proprietary management relationships between persons, as well as their rights and obligations. The protective clause for property rights in the Constitution of South Africa stipulates those proprietary relationships which qualify for constitutional protection. The most important social function of property law in South Africa is to manage the competing interests of those who acquire property rights and interests. In recent times, restrictions on the use of and trade in private property have been on the rise.

<span class="mw-page-title-main">South African contract law</span> Law about agreements between two or more parties

South African contract law is "essentially a modernized version of the Roman-Dutch law of contract", and is rooted in canon and Roman laws. In the broadest definition, a contract is an agreement two or more parties enter into with the serious intention of creating a legal obligation. Contract law provides a legal framework within which persons can transact business and exchange resources, secure in the knowledge that the law will uphold their agreements and, if necessary, enforce them. The law of contract underpins private enterprise in South Africa and regulates it in the interest of fair dealing.

The South African law of succession prescribes the rules which determine the devolution of a person's estate after his death, and all matters incidental thereto. It identifies the beneficiaries who are entitled to succeed to the deceased's estate, and the extent of the benefits they are to receive, and determines the different rights and duties that persons may have in a deceased's estate. It forms part of private law.

Ikea Trading und Design AG v BOE Bank Ltd, an important case in South African property law, was heard in the Supreme Court of Appeal on March 18, 2004, with judgment handed down on April 1.

Aucamp v Morton is an important case in South African contract law. It was heard in the Appellate Division by Watermeyer CJ, Centlivres JA, Schreiner JA, Van den Heever JA and Fagan AJA on 7 and 8 June 1949, with judgment on 21 June.

Fourway Haulage SA (Pty) Ltd v SA National Roads Agency Ltd is an important case in South African law. It was heard in the Supreme Court of Appeal on 5 November 2008, with judgment handed down on 26 November. The judges were Scott JA, Farlam JA, Brand JA, Lewis JA and Jafta JA. JH Dreyer SC appeared for the appellant, and AC Ferreira SC for the respondent.

Kragga Kamma Estates CC and Another v Flanagan is an important case in the South African law of contract, an appeal from a decision in the South Eastern Cape Local Division by Jansen J. It was heard in the Appellate Division on August 19, 1994, with judgement handed down on September 29. The presiding officers were EM Grosskopf JA, Nestadt JA, Kumleben JA, Howie JA and Nicholas AJA. The appellants' attorneys were Tobie Oosthuizen, Port Elizabeth, and Webbers, Bloemfontein. The respondent's attorneys were Jankelowitz, Kerbel & Schärges, Port Elizabeth, and Lovius-Block, Bloemfontein. HJ van der Linde appeared for the appellants; JRG Buchanan SC for the respondent.

Mayne v Main is an important case in South African law. It was heard in the Supreme Court of Appeal (SCA) on 1 March 2001, with judgment handed down on 23 March. Smalberger ADCJ, Nienaber JA, Farlam JA, Mpati JA and Mthiyane AJA presided. A. Subel SC appeared for the appellant and JPV McNally for the respondent. The appellant's attorneys were Knowles, Husain Inc, Sandton, and McIntyre & Van der Post, Bloemfontein. The respondent's attorneys were Webber, Wentzel, Bowens, Johannesburg, and Webbers, Bloemfontein. The case was an appeal from a decision of the Full Court in the Witwatersrand Local Division.

Insolvency in South African law refers to a status of diminished legal capacity imposed by the courts on persons who are unable to pay their debts, or whose liabilities exceed their assets. The insolvent's diminished legal capacity entails deprivation of certain of his important legal capacities and rights, in the interests of protecting other persons, primarily the general body of existing creditors, but also prospective creditors. Insolvency is also of benefit to the insolvent, in that it grants him relief in certain respects.

The law of agency in South Africa regulates the performance of a juristic act on behalf or in the name of one person by another, who is authorised by the principal to act, with the result that a legal tie arises between the principal and a third party, which creates, alters or discharges legal relations between the principal and a third party. Kerr states that, in legal contexts, the word "agent" is most commonly used of a person whose activities are concerned with the formation, variation or termination of contractual obligations, and that agency has a corresponding meaning. It is the agent's position as the principal's authorised representative in affecting the principal's legal relations with third parties that is the essence of agency.

References

Notes

  1. 1931 AD 501.
  2. Wessels ACJ, Stratford JA, Roos JA and Hutton AJA.