A critical appraisal of the decision in Sonap v Pappadogianis 1992 (3) SA 234 (A), with reference to the basis of contractual liability in South African law and various other legal systems

Abstract

In Sonap Petroleum (formerly known as Sonarep) (SA) (Pty) Ltd v Pappadog1an1s 1992 (3) SA 234 (A) the Appellate Division apparently approved the direct application of the reliance theory, without reference to prejudice or fault, to determine contractual liability in the absence of consensus. The various approaches to contractual liability in South African law are examined, and a comparative study of English law and the law of the Netherlands is conducted. It is submitted that the element of fault is not crucial to the enquiry, but rather, the elements of conduct , inducement and a reasonable reliance upon consensus. It is concluded that the test for contractual liability in the absence of actual consensus, as formula ted by the court in Sonap's case, without reference to prejudice or fault, has established sound precedent in South African law.