Judgment No. SC 15/18
Civil Appeal No. SC 266/15
These remarks are apposite. It was not for the court a quo to read the letter to mean
that the appellant had accepted the purported transfer of suretyship from the respondent to
Lazarus Nyakudya. The clear language used in the letter does not reflect such an intention.
The court a quo also erred in making a finding that the first deed of suretyship
signed by the respondent was compromised by the one signed by Lazarus Nyakudya. Compromise
is defined by R.H Christie in ‘The Law of Contract in South Africa’ 3 rd edition at page 505 as
follows:
“Compromise, or transactio, is the settlement by agreement of disputed obligations, whether
contractual or otherwise. If any offer to settle in particular terms is not accepted, the offeree
cannot treat an inseparable part of the offer and sue on it. Even a criminal charge may be
settled by the process known as plea bargaining and the resulting compromise will be
enforceable. It is a form of novation differing from the ordinary novation in that the
obligations novated by the compromise must previously have been disputed or uncertain, the
essence of the compromise being the final settlement of the dispute or uncertainty.”
What is derived from the above definition is that a compromise is a settlement of a
disputed obligation through another agreement which then replaces the principal agreement. In
casu, the appellant accepted the deed of surety signed by Lazarus Nyakudya but did not cancel the
first deed executed by the respondent. Consequently there was no compromise because as already
highlighted, the appellant had to cancel the deed of suretyship in writing to make it valid. That this
is a correct reflection of the true status between the parties is borne out by the evidence of the
respondent himself and Nyakudya.
The respondent accepted that in terms of clause 5 of the deed, the appellant had to
agree in writing to the cancellation of the suretyship. He also admitted that the letter written by the
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