Suspensive and resolutive conditions

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5.2 Suspensive and resolutive conditions
A suspensive condition suspends the operation of all or some of the obligations flowing from the contract until the happening of a future, uncertain event. A resolutive condition, on the other hand, terminates all or some of the obligations flowing from the contract upon the happening of a future and uncertain event. (See R H Christie: The Law of Contract, 4th Edition, at page 159; President Land Trust Ltd v Union Government (Minister of Mines) 1911 AD 615 at 627-628.) Whether a conditional clause in a contract is suspensive or resolutive is a matter of construction. It will depend on the intention of the parties as expressed in the language of the contract. (See: Worman v Hughes and Others 1948 (3) SA 495 (A) at 505; Van Pletsen v Henning 1913 AD 82 at 89; Van Jaarsveld v Coetzee 1973 (3) SA 241 at 244E-F.) The words “subject to” in contractual settings are usually used to denote a suspensive condition, but depending on the context, it could also denote a resolutive condition or simply a material term as opposed to a suspensive or resolutive condition. (Panabourne Properties Ltd v Ramsdon 1996 (1) SA 1182 (A) at 1188A.)

THE HIGH COURT OF SOUTH AFRICA (CAPE OF GOOD HOPE PROVINCIAL DIVISION) CASE No: 10352/2005 In the matter between: KARTHIGASEN NARAIN (First Applicant) SABASHNEE NARAIN (Second Applicant) and FINEPROPS 1074 CC (Respondent)