MacDonald Ltd v Radin NO and the Potchefstroom Dairies and Industries Co Ltd 1915 AD 454

 MacDonald Ltd v Radin NO and the Potchefstroom Dairies and Industries Co Ltd 1915 AD 454

Facts

The case of MacDonald Ltd v Radin NO and the Potchefstroom Dairies and Industries Co Ltd 1915 AD 454 involved a dispute between a machinery supplier, MacDonald Ltd, and a dairy company, the Potchefstroom Dairies and Industries Co Ltd.

The dairy company had purchased a large refrigerator from MacDonald Ltd, on condition that the refrigerator would remain the property of MacDonald Ltd until the dairy company had paid the full purchase price. The dairy company also agreed that if it defaulted on any of its payments, MacDonald Ltd would have the right to remove the refrigerator from the dairy company's premises.

The dairy company defaulted on one of its payments, and MacDonald Ltd attempted to remove the refrigerator from the dairy company's premises. However, the dairy company refused to allow MacDonald Ltd to remove the refrigerator, arguing that the refrigerator was now its property.

MacDonald Ltd applied to the court for an order authorizing it to remove the refrigerator from the dairy company's premises. The dairy company argued that the refrigerator had become its property through accession, which is a legal principle that states that a movable thing that is attached to an immovable thing becomes part of the immovable thing.

Issue

The main issue in the case was whether the refrigerator had become the property of the dairy company through accession.

Reasons

The Appellate Division of the Supreme Court of South Africa held that the refrigerator had not become the property of the dairy company through accession. The court found that the refrigerator was still the property of MacDonald Ltd, because it had been attached to the dairy company's premises in a temporary manner.

The court held that for accession to occur, the movable thing must be attached to the immovable thing in a permanent manner. The court found that the refrigerator had not been attached to the dairy company's premises in a permanent manner, because it could be easily removed without damaging the premises.

The court also held that the intention of the parties is relevant to the question of accession. The court found that the parties did not intend for the refrigerator to become the property of the dairy company through accession. The parties had agreed that the refrigerator would remain the property of MacDonald Ltd until the dairy company had paid the full purchase price.

Conclusion

The court held that the refrigerator was still the property of MacDonald Ltd and that MacDonald Ltd was entitled to remove it from the dairy company's premises.

Summary

The case of MacDonald Ltd v Radin NO and the Potchefstroom Dairies and Industries Co Ltd 1915 AD 454 is a landmark case in South African law. The case is particularly important for its analysis of the following issues:

• The concept of accession;
• The factors that determine whether accession has occurred; and
• The relevance of the intention of the parties to the question of accession.

Concept of accession

Accession is a legal principle that states that a movable thing that is attached to an immovable thing becomes part of the immovable thing.

Factors that determine whether accession has occurred

The factors that determine whether accession has occurred include:

• The nature of the movable thing;
• The manner in which the movable thing is attached to the immovable thing; and
• The intention of the parties.

Relevance of the intention of the parties to the question of accession

The intention of the parties is relevant to the question of accession. If the parties intended for the movable thing to become part of the immovable thing, then accession is more likely to occur.

Impact of the Case

The case of MacDonald Ltd v Radin NO and the Potchefstroom Dairies and Industries Co Ltd 1915 AD 454 has had a significant impact on the law of accession in South Africa. The case has clarified the concept of accession and the factors that determine whether accession has occurred. The case has also established that the intention of the parties is relevant to the question of accession.