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Primedia (Pty) Ltd and Another v Baffalo City Metropolitan Municipality and Another (2775/2012) [2013] ZAECGHC 112

Primedia (Pty) Ltd and Another v Baffalo City Metropolitan Municipality and Another (2775/2012) [2013] ZAECGHC 112
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6th January 2014

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  • Primedia (Pty) Ltd and Another v Baffalo City Metropolitan Municipality and Another (2775/2012) [2013] ZAECGHC 112
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[1] The first applicant and the first respondent had a rather sound contractual relationship dating back to January 2005. This contractual relationship relates to the right given by the first respondent to the first applicant to erect illuminated advertising signs incorporating street names in Buffalo City Municipal area. These signs are essentially poles on which there is a large space for local businesses to advertise their individual businesses. First applicant would then be charged by the first respondent a fixed monthly amount of just in excess of R31 500.00. This contract between the parties aforementioned gave the first applicant the right to supply, erect and maintain advertising signage incorporating street names. The contract was concluded in 2005 and was to expire on 31 July 2006 but, it continued thereafter on a month to month basis until on or about 28 January 2010 when first respondent purported to terminate the agreement with effect from 1st February 2010. First respondent then required first applicant to remove all its structures by not later than 28th February 2010 on the basis that first respondent would, in the near future invite tenders for the right to supply illuminated street signage advertising. First applicant refused to remove its structures and continued to pay rentals to the first respondent and to maintain the signs. First respondent once more purported to terminate the agreement with immediate effect on 22 November 2011 which act was contested by first applicant.

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