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Share Blocks Control Act 1980 (Act No. 59 of 1980)

18. Consequences of non-compliance with formalities

 

(1) Subject to the provisions of subsection (2), any purchaser or seller who has performed partially or fully under a contract for the acquisition of a share which does not comply with the provisions of section 16 or 17, shall be entitled to reclaim from the other party what he has performed under the contract, and—
(a) the purchaser may in addition claim from the seller—
(i) interest at 12 per cent per annum or at the rate prescribed from time to time by the Minister by regulation for the purposes of this section, on any payment made under the contract, from the date of the payment to the date of recovery thereof; and
(ii) reasonable compensation for any expenses incurred by him with or without the authority of the company, for the preservation of the immovable property in respect of which the share block scheme is operated, or in respect of any improvements which enhance the market value of that immovable property and which were effected by him with the express or implied consent of the company; and
(b) the seller may in addition claim from the purchaser—
(i) reasonable compensation for the use that the purchaser may have had of the immovable property in respect of which the share block scheme is operated; and
(ii) compensation for any damage caused in respect of such immovable property by the purchaser or any person for whose acts or omissions the purchaser is delictually liable.

 

(2) The provisions of subsection (1) shall not apply in respect of a contract for the acquisition of a share which substantially complies with the provisions of sections 16 and 17, and a contract for the acquisition of a share which does not comply with the provisions of section 16 or 17, whether or not in a substantial respect, shall not be affected by such defect if the purchaser has discharged his obligations in terms of the contract and the seller has transferred the relevant share to the purchaser, and shall in such case be deemed from the conclusion thereof not to be affected by the defect.