THE BANK’S RIGHT TO CANCEL THE CONTRACT BETWEEN IT AND ITS CUSTOMER UNILATERALLY Bredenkamp v Standard Bank of South Africa Ltd 2010 4 SA 468 (SCA)

Abstract

Does a bank have the right to cancel the contract between it and its customer unilaterally? This was the crisp question put to the court in the recent decision in Bredenkamp v Standard Bank of South Africa Ltd (2010 4 SA 468 (SCA); 2010 4 All SA 113 (“Bredenkamp: appeal”)). Before this case reached the Supreme Court of Appeal (“SCA”), two lower courts were asked to pronounce on the same question (see Breedenkamp v Standard Bank of South Africa 2009 3 All SA 339 (GSJ); 2009 5 SA 304 (GSJ) (“Bredenkamp: interim application”)); and Breedenkamp v Standard Bank of South Africa Ltd 2009 6 SA 277 (GSJ) (“Bredenkamp: main application”). (In passing it should be mentioned that Bredenkamp’s name was spelt incorrectly in the citation of both the interim and main applications; Bredenkamp’s name was correctly spelt in the citation of the decision of the SCA). The present discussion will refer to all three these decisions.