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Causa and consideration in South African law

(a) The reception of (he consideration doctrine

Both cause and consideration are refined legal doctrines which have developed, from a common source, in their own individual way.

Both of them perform the same function; they serve as a test of seriousness to distinguish between promissory transactions which are binding and those which are not.[2852] Both of them, however, are highly problematic, and their utility within the modern law of contract has been repeatedly and severely queried. These problems are, of course, exacerbated if a legal system starts confounding the two doctrines. Such a legal system may well, as a result, land in "a nightmare of confusion".[2853] This is what happened in the history of South African law.[2854]

In the course of the 19th century the term "iusta causa" came to be translated as "consideration"; and the term "consideration", not unnaturally, was very soon equated with the English doctrine of valuable consideration.[2855] In the first two decades of this century the question whether iusta causa, as understood by the classical Roman- Dutch lawyers, was or was not distinguishable from the consideration of English law, became the great cause celebre of contractual theory, with the two most influential judges of their time as protagonists. J.G. Kotze, Anthony Trollope's "boy judge",[2856] the man who shaped the early history of the Transvaal Supreme Court, advocated the former position, while Lord De Villiers, who reigned as Chief Justice for 41 years—first of the Cape, then, since its inception, of the Union of South Africa[2857]—took the rule of the "besoedelaar" or "pollutionist".[2858] In Rood v. Wallach[2859] and Mtembu v. Webster[2860] this clash of judicial opinion came to a head.

Five years after Lord De Villiers1 death, the Appellate Division of the Supreme Court finally declined to endorse his view on the matter in the case of Conradie v. Rossouw.[2861] "A good cause of action can be founded on a promise made seriously and deliberately and with the intention that a lawful obligation should be established": this is how the court defined the causa requirement,[2862] and it rejected any idea of a reception of the English consideration doctrine.[2863]

(b) lusta causa and Grotius' notion of "redeiicke oorzaecke"

It appears to be clear that Lord De Villiers was wrong in equating causa and consideration.[2864] It is a far cry from Brother Baptista's garland of sweet-smelling roses to the refined and technical doctrine of consider­ation worked out over the centuries by the English courts. Continental causa and English consideration have developed in different directions, and the latter never formed part of the Roman-Dutch law of Holland. On the other hand, Kotze[2865] and his followers were probably not right either.

"It may, indeed, be doubted whether the doctrine of causa really occupied the important place in the Roman-Dutch law which has been assigned to it in modern discussions",

says Lee,[2866] and this is putting it mildly. Causa as an independent requirement for promissory transactions was on the way out in Germany, as it was in the Netherlands.[2867] One of the main sources, always brought up in the debate, is Grotius' Inleiding. We have already referred to the famous passage where he makes mention of the "redelicke oorzaecken".[2868] But the context in which this term appears is a rather peculiar one. In his Inleiding Grotius distinguishes between obligations arising from toezegging (promise) and from onevenheid (inequality).[2869] A toezegging is either "uitdruckelick" (express) or "door wetduiding" (implied by law).[2870] [2871] Express promise, in turn, is "door woorden, of schrift", i.e.

verbis or litteris. Grotius then explains that with regard to express verbal promises the subtleties of Roman law (he uses the word "scherpzinnigheid") no longer have to be complied with; "alle toezegginghen die uit eenighe redelicke oorzaecken geschieden" give rise to a right of action.[2872] [2873] "Redelicke oorzaecke", so he continues,

"werd verstaen zoo wannccr de toezegging oftc beloftc geschied ter schcnk, of dient tor eenige andere handelinge, 't zy zulcks geschied ten tijde vande handeling ofte daer

One cannot say that Grotius makes it entirely clear what he means. Thus, for instance, he may be taken to attribute significance to the concept of "redelicke oorzaecke" only in the case of express promises (though those of the modern, informal kind): auxiliary (incidental or accessory) transactions[2874] and gifts.[2875] More convincing, on balance, seems to be another interpretation. "Redelicke oorzaecke" is used in a very untechnical sense as the basis of every contractual agreement: it indicates that the law recognizes the agreement as reasonable, acceptable and thus enforceable. This is undoubtedly the case, for instance, as far as contracts of sale, hire, etc. are concerned: here, "de grond zelye van de handelinghe heeft een rechtelicke oorzaeck".[2876] But the promise of a gift and auxiliary pacta, whether concluded in continent! or ex intervallo are reasonable bases for a contractual obligation too.[2877] This appears to be the special import of III, I, 53.

But whatever the historically correct interpretation may be, in South African law Grotius' statement has contributed considerably to the prevailing confusion. More particularly, it has for a long time prevented courts and legal writers from recognizing that the require­ment of iusta causa had in fact become redundant.91 * [2878] An agreement must be entered into with a serious intention to be bound, and it must not be tainted by illegality or immorality. If these conditions are present, an enforceable contract has come into existence.[2879] Whether one lumps these two requirements together sub titulo "iusta causa" is a matter of terminology. [2880] But under a regime of ex nudo pacto oritur actio, neither causa nor iusta causa are separate, additional requirements that have to be met before a contract can be said to have been validly concluded.[2881]

III.

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Source: Zimmermann R.. The Law of Obligations. Roman Foundations of the Civilian Tradition. Juta & Co, Ltd,1992. — 1241 p.. 1992

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