IRM1501 Assignment 2 (COMPLETE ANSWERS) Semester 1

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Find the case of Global & Local Investment Advisors (Pty) Ltd v Fouche (71/2019 [2020] ZASCA 8; 2021 (1) SA 371 SCA (18 March 2020) and summarize it in the prescribed format (facts, legal question, ... reasons for the findings and the findings) Here is a summary of the case: Facts: • Mr. Nickolaus Ludick Fouché, a mining consultant, gave a written mandate to Global & Local Investments Advisors (Pty) Ltd (Global) to act as his agent and invest money with Investec Bank on his behalf. • The written mandate stipulated that “All instructions must be sent by fax to 011 486 2915 or by email to [email protected] with client’s signature.” • In August 2016, fraudsters hacked Mr. Fouché’s Gmail account and sent three emails to Global on 15, 18, and 24 August 2016, requesting the release of funds from Mr. Fouché’s account. • Global released the funds in response to the fraudulent emails. Legal Question: • Whether Global breached a mandate in terms of which it was authorized to invest and manage money entrusted to it by Mr. Fouché by releasing funds in response to fraudulent emails ostensibly sent by Mr. Fouché. Reasons for the Findings: • The Gauteng Division of the High Court, Johannesburg (Vorster AJ) found that there had been a breach of the mandate and that consequently, Global was liable to be reimbursed in the amount of R804 000. • The high court ordered Global to pay Mr. Fouché’s costs. • On appeal, the Supreme Court of Appeal of South Africa upheld the high court’s decision. Findings: [Show More]

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