The Environmental Case Law Index is a collection of judgments from 10 African countries on topics relating to environmental law, both substantive and procedural. The collection focuses on cases where an environmental interest interacts with governmental or private interests.
Get started on finding judgments that are relevant to you by browsing the topic list on the left of the screen. Click the arrows next to the topic names to reveal a detailed list of sub-topics. Most judgments are accompanied by a short summary written by subject-area expert postgraduate students from the University of Cape Town.
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The matter concerned the importation of fish, whereby letters of credit were opened at the appellant bank, by the 1st defendant on behalf of the respondent for the importation, which the respondent had sought to cancel.
The court considered the relationships between the parties and found that the opening of the letters of credit created a relationship between the bank, and the respondent, and also imposed on the appellant an obligation to ensure the rights of the respondent were protected. The court found that the appellant failed to do so and resultantly could not escape liability.
The court held that where a duty exists, it must be faithfully observed, since breach thereof would result in damages. The duty owed to the respondent was established with the opening of the letters of credit. This created an obligation on the part of the appellant to keep to the clear terms, under which the letters of credit were to operate. Accordingly, the court found that it was the appellant’s duty to ensure that the terms thereunder were kept.
The court held that where, in a commercial transaction or a contractual relationship, a party signs a disclaimer, then that party by virtue of the disclaimer avoids liability for breach. The court found that the appellant bank, by implication, withdrew their earlier instructions, through their acceptance of the explanations given by the correspondent bank ,and that fact amounted in effect, to not giving any instructions at all.