UNIVERSITY OF BOTSWANA
DEPARTMENT OF LAW
LAW 251: FOUNDATIONS OF BUSINESS LAW
COURSE OUTLINE
SEMESTER 1 ACADEMIC YEAR 2025/2026
CONVENOR/ COORDINATOR:
Dr Ame Rebecca Masuku
Ext 2373
Email: chimbombia@ub.ac.bw
LECTURING TEAM:
Lecture
group
Rebecca Lec 01
Venue
Name of lecturer
Lecture days
Dr
Ame
Masuku
Dr Tapiwa Warikandwa
Lec 02
Dr Baatlhodi Molatlhegi
Lec 03
Tuesday, Thursday & 252/03
Friday 9am
Monday, Wednesday 252/03
& Friday 10am
Monday, Wednesday 252/03
& Friday 11am
Mr Tecle Bahta
Lec 04
Tuesday, Thursday & 245/041
252/002
Friday 1pm
252/004
OBJECTIVES AND LEARNING OUTCOMES
The first part of this course provides a brief overview of the Botswana legal system, with
special emphasis on the nature, classification and sources of the law and the structure
and hierarchy of the courts. The second and main part of the course introduces general
principles of the law of contract, with special emphasis on formation, content, breach
and termination of contracts. A contract is the core element of most business
transactions. Although common examples of business contracts have unique
characteristics and are governed by special rules, general principles introduced in this
course apply to all contracts. This course thus sets the foundations for further study of
the law relating to specific types of business contracts or arrangements in other law
courses.
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At the end of the course students will be expected to have a sufficient grasp of the rules
and general principles to recognize and appreciate incidences relating to formation,
content, and breach of contracts in simple and common business transactions. Through
elements of the Botswana legal system introduced, students will also be able to
appreciate how legal rules and principles affecting simple business transactions are
developed, through case law and statutory interpretation.
METHODOLOGY
The course will be taught mainly through lectures and individual or group assignments
or exercises on specific topics and issues. The blended learning approach will be
followed. Some lecture notes, exercises, case and other reading materials will be
posted on Blackboard. But to ensure that online learning does not substitute for class
attendance, there will be a considerable time lag between lecturing and the posting of
relevant materials on Teams or Moodle. Attendance of classes and participation in
class discussions will also be closely monitored. As not everything of importance on a
particular topic can be taught in class, students will be expected to read prescribed texts
and other recommended books, cases and other materials.
ASSESSMENT:
Assessment will be based on continuous assessment and a final examination.
Continuous assessment will be in the form of two tests. The ratio of continuous
assessment to an examination will be 2 to 3; that is continuous assessment will
contribute 40 per cent towards the final mark for the course, and the examination 60 per
cent.
OTHER COURSE DETAILS:
Type:
Lecture hours:
Credits:
Prerequisites:
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Core
3 per week
3
None
TEXTS AND REFERENCES
Prescribed Texts:
D Hutchison and C Pretorius (eds), The Law of Contract in South Africa (4th edn,
Oxford University Press 2022
Other References:
1. C.J. Nagel et al, Commercial Law, (2nd edn, Butterworth 2000)
2. C.M. Fombad, Botswana Legal System, (2nd edn., Lexis Nexis 2013)
3. C Visser et al, Gibson South African Mercantile & Company Law, (8th edn., Juta
& Co Ltd 2003)
OUTLINE
1
INTRODUCTION TO THE BOTSWANA LEGAL SYSTEM
1.1
Nature and functions of law
1.2
Classifications of law in Botswana
1.3
Sources of Botswana Law
1.4
Structure, Jurisdiction and Composition of Botswana Courts
1.4.1 Higher or Superior Courts



Constitutional Court
Court of Appeal
High Court
1.4.2 Subordinate or Lower Courts
 Magistrate’s Court (including the Juvenile Court)
 The Small Claims Court
 Customary Courts
1.4.3 Courts with Special Jurisdiction



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The Industrial Court
The Land Tribunal
The Public Procurement Tribunal



1.5
The Non-Bank Financial Institutions Tribunal
The Board of Adjudicators for Tax Matters
The Court Martial
Higher Courts and the Doctrine of Precedent
The Common law and the doctrine of precedent
Elements of a case
1.6
Reading, interpretation analysis and understanding of a case
Either
Hanhle Hanhle Holdings (Pty) Ltd v Labs Furniture & Equipment (Pty) Ltd 2020 1
BLR 144
Or
Oleseng v RBV Consultants 2020 1 BLR 296
1.7
The Legislature and Enactment of Statutes
1.8
Other Notable Actors and Institutions in the Botswana Legal System






2.
The National Assembly, The Executive & The Judiciary
House of Chiefs
Attorney General
Director of Public Prosecutions
The Ombudsman
Judicial Service Commission
INTRODUCTION TO CONTRACT LAW
2.1 Definition and elements of a contract
 A contract as a legally recognized “agreement’
 Subjective and objective aspects of an agreement





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South African Railways & Harbours v National Bank of South Africa,1924
AD 704
I. Pieters & Co.v Salmon, 1911 AD 121
Khama v Debswana Diamond Co. (Pty) Ltd 2000 (1) BLR 31 (HC)
Alemayehou v The Director of Public service Management and Others
2005 (2) BLR 199 (HC)
Molete v Kromberg & Schubert (Pty) Ltd [2020] 2 BLR 363 (HC)
2.2
Formation of a contract
This sections deals with the various aspects relating to the formation of a contract as
follows:
2.2.1 The concept of an Offer
 Definition and elements
 Metswe and Another v Thata Save (Pty) Ltd, 2000 (2) BLR 198 (IC)
 Botswana Development Corporation v Tredinnick (Botswana) (Pty)
Ltd [2008] 1 BLR 231, (CA)
 MM Enterprises (Pty) Ltd and Another v Residential Holdings (Pty)
Ltd and Another [2016] 3 BLR 1 (HC)
 Molete v Kromberg & Schubert (PTY) Ltd [2020] 2 BLR 363 (HC)
 Animus contrahendi
 Conradie v Rossouw, 1919 AD 279
 TIM’S Lock and Key (Pty) Ltd v jones and Another, [1988] BLR.
338.
 Fashion Enterprises v Image Botswana Ltd, [1994] BLR, 288
 Botswana Telecommunications Corporation v Gabaake-Kauta and
Others 2009 (1) BLR 130 (CA)
 Mupane Mining (Pty) Ltd v Becor Bricks (Pty) Ltd [2020] 1 BLR 426
(CA)
 Solicitation of information, statements of intention, advertisements, etc.
 Crawley v R 1909 TS 1105
 Efroiken v Simon 1921 CPD 367
 Ferguson v Merensky 1903 TS 657
 General offers to the public
 Carlill v Carbolic Smoke Ball Co. [1893] 1 QB 256 (CA)
 Bloom v American Swiss Watch Co. 1915 AD 100
 Duration and termination of an offer
 Dietrichsen v Dietrichsen 1911 TPD 486
 Irrevocable offers and options
 Hersch v Nel 1948 (3) SA 686 (A)
 Bhamjee v Maposa (No. 2), [1988] BLR 268
2.2.2 The concept of an acceptance
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 Meaning
 Who should accept
 Modes of acceptance
 Watermeyer v Murray, 1911 AD 61
 Nyabienda v Attorney General 2000 (1) BLR 143 (HC)
 Nindi v The University of Botswana 2005 (1) BLR 439 (HC)
 Mupane Mining (Pty) Ltd v Becor Bricks (Pty) Ltd [2020] 1 BLR 426
(CA)
 Withok Small Farms (Pty) Ltd v Amber Sunrise Properties 5 (Pty)
Ltd 2009 2 SA 504 (SCA)
 Botswana Development Corporation v Tredinnick (Botswana) (Pty)
Ltd [2008] 1 BLR 231, (CA)
 Communication of an acceptance
 Communication through the postal system
Cape Explosives Works Ltd v SA oil and Fat Industries Ltd, 1921
CPD
Kergeulen Sealing and Whaling Co. Ltd, CIR 1939 AD 487
 Contracts concluded by telephone
Wolmer v Rees, 1935 TPD 319
Tel Peda Investments Bureau (Pty) Ltd v Van zyl 1965 (4) SA 475
 Contracts concluded online (electronically)
 Significant transformation in the law of contract in the 21st century
 Spring Forest Trading CC v Wilberry (Pty) Ltd t/a Ecowash 2015 2
SA 118 (SCA)
 Borcherds v Duxbury 2021 1 SA 410 (ECP)
 Aarifah Security Services CC v Jakoita Properties (Pty) Ltd
2021 5 SA 207 (GJ)
 Global & Local Investments Advisors (Pty) Ltd v Fouché 2021 1 SA
371 (SCA).
Electronic Communications and Transactions Act 14 of 2014
van Eck, M., & Agbeko, F. D. (2024). The Recognition and Regulation of Smart
Contracts in South Africa. Potchefstroom Electronic Law Journal, 27, (Published on 5
September) pp 1-24 available at https://perjournal.co.za/article/view/16383/22875
2.2.3 Offer and Acceptance in Some Special Arrangements
 Tendering
WBHO Construction (Pty) Ltd v PPADB and Others [2006] 2 BLR 361 (HC)
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Letsatsi Investments (Pty) Ltd v South East District Council and Another [2009] 1
BLR 449 (HC)
2.3
Formalities
 General rule as to the form which contracts may take
 Meswele Investments (Pty) Ltd T/a Oasis Motel v Attorney General
1985 BLR 370 (HC)
 Metswe and Another v Thata Save (Pty) Ltd, 2000 (2) BLR 198 (IC)
 Pillay v Shaik 2009 4 SA 74 (SCA)
 Written form required by law, egs.
S. 4 of the Hire Purchase Act, Cap 46:03
S. 10 of the State Land Act, Cap 32:01
 Deeds and notarial execution
S. 17 of the Deeds Registry Act, Cap 32:02
S. 83 of the Deeds Registry Act, Cap 32:02
 Interpretation of written agreements
 TGB Drill Contractors (Botswana) Pty Ltd v National Development
Bank 1987 BLR 11 (HC)
 Mosienyane v Dobo 1989 BLR 473
 Sinohydro Botswana (Pty) Ltd v Botswana Insurance Co Ltd 2012
(1) BLR 527 (HC)
 Baithuti Holdings (Pty) Ltd v JNG Express (Pty) Ltd [2020] 1 BLR
346 (CA)
 Jng Express (Pty) Ltd v Baithuti Holdings Pty) Ltd [2018] 3 BLR 307
(HC)
2.4
Contractual Capacity
2.4.1 Minority
S. 49 of the Interpretation Act, Cap. 1:04
Edelstein v Edelstein, 1952 (3) SA 1 (A)
Stuttaford & Co. v Oberholzer, 1921 CPD 855
2.4.2 Marriage in Community of property
Effects of marriage in community of property
Reloomel v Ramsay, 1926 TPD 271
Abolition of Marital Power Act, 34 of 2004,Cap. 29:07
Married Persons Property Act, 2014
Ntema v Ntema [2020] 2 BLR 510 (HC)
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2.4.3 Insanity
Molyneux v Natal Land and Colonization Company Limited [1905] AC 555
Pheasant v Warne 1922 AD 81
2.4.4 Intoxication
Goodman v Pritchard, (1907) 28 NLR 227
2.4.5 Prodigality
Delius v Delius 1960 (1) SA 270
2.4.6 Insolvency
Ss. 21 – 22 of the Insolvency Act, Cap 42:02
Test One- Week of 8th September 2025
3
Other factors affecting validity or enforceability of a contract
3.1
Mistake (Error)
 National and Overseas Distributors Corporation (Pty) Ltd v Potato Board,
1958 (2) SA 473 (A)
 Allen v Sixteen Stirling Investments (Pty) Ltd, 1974 (4) SA 164 (D)
 George v Fairmead (Pty) Ltd, 1958 (2) SA 465
 Standards Chartered Bank Ltd v Estate Construction (Pty) Ltd, [2001] BLR
2033
 Klette v Dick Drilling Services, 1994 BLR 432 (HC)
 Thobega v Botswana Motor Vehicle Insurance Fund, 1995 BLR 657
 Tlokweng Land Board v Matsetse and Another, 2007 (2) BLR 850 (CA)
 Tati Motors (Pty) Ltd t/a Nine Miles Service Station v BP Botswana (Pty)
Ltd [2020] 2 BLR 159 (CA)
 Tawana Land Board v Wutuka Takwenda Adventure Safaris (Pty) Ltd and
Another [2016] 1 BLR 531 (CA)
 Molete v Kromberg & Schubert (PTY) LTD [2020] 2 BLR 363 (HC)
3.2
Misrepresentation
 Definition and elements of:
Novick & Another v Comair Holdings Ltd, 1979 (2) SA 116, 149-150
BCL Ltd v Trengove No and Another, 2002 BLR 221 (HC)
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Loeto v Molaolwa 1994 BLR 355
Motor Sales and Service Pty Ltd v Bapedi Transport Pty Ltd, 2009 (1) BLR
81
Dibley v Furter, 1951 (4) SA 73
Karabus Motors (1959) Ltd v Van Eck 1962 (1) SA 451 ©
Mazza v Jones, 1973 (2) SA 740
Ashfaq and Another v Li and Another [2016] 1 BLR 7 (CA)
Maroba Phuti Enterprises (Pty) Ltd and Another v Tram Holdings (Pty) Ltd
[2018] 3 BLR 117 (CA)
Bernick (Pty) Ltd v Tshegang University (Pty) Ltd t/a Bosa Bosele Training
Institute [2013] 3 BLR 186 (HC)
 Remedies and Consequences
Trotman and Another v Edwick 1951 (1) SA 443 (A)
Phame (Pty) Ltd v Paizes 1973 (3) SA 397 (A)
Dibley v Furter 1951 (4) SA 73 (C)
3.3
Duress
Broodryk v Smith No 1942 TDP 47
Arend & Another v Astra Furnishers 1974 (1) SA 298
Botswana Breweries (Pty) Ltd v Nelson Woto, 1997 BLR 368 (HC)
Liwena v Afro Ventures Botswana t/a And Beyond [2014] 1 BLR 303 (IC)
Letsebe v Obakeng [2019] 1 BLR 345 (HC)
Barclays Bank of Botswana Ltd v Jeff 039S Enterprises (Pty) Ltd, 2009 (1)
BLR 341
3.4
Undue Influence
Preller v Jordan, 1956 (1) SA 483 (A)
Patel v Grobbelaar 1974, (1) SA 532) A
Nkarabang v Materere; In Re: Nkarabang v Materere [2016] 3 BLR 500 (HC)
3.5
Illegality (Prohibited arrangements or terms)
 Statutory illegality, examples of Statutes prohibiting certain aspects of a
contract
Land Control Act, Cap 32: 11
Employment Act, Cap 47:01
 Common law illegality, as a general consideration:
Sasfin (Pty) Ltd v Buekes, 1989 (1) SA 1
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 Specific examples of contracts or terms prohibited at common law:
Contracts or terms in restraint of trade
o Magana Alloys Ltd v Ellis, 1984 (4) 8740 874
o Martex Trading Pty Ltd T/a Builders Merchants Botswana v Lloyd,
1998 BLR 201 (HC)
o Equinox Investments Pty Ltd v Lepopo Pty Ltd, 2002 (1) BLR 149
Pactum commissoria
Tswaing v Van Schalkwyk, 1979 -80 BLR 149 (HC)
Molome v Quick Cash Ltd, 2001 (2) BLR 93 (HC)
Pactum de non cedendo
Drambore Ltd v Cyril Hurvitz Co. (BP) and Another, 1993 BLR 245 (CA)
 Enforceability of illegal terms or contracts
Olatotse v Makhala, 1986 BLR322 (HC)
Masilonyane v Setlhare, 2007 (3) BLR 62 (HC)
Molefi v Blue Blends Investments (Pty) Ltd, 2004 (1) BLR 259 (IC)
4.
Terms and contents of a contract
4.1
Terminology and classifications
 Essentialia, naturalia and incidentialia
 Warranties and conditions
 Suspensive and resolutive conditions
Small v Smith 1954 (3) SA 434
Meswele Investments (Pty) Ltd t/a Oasis Motel v Attorney General, [1985]
BLR 370
Goddard v Anjus Fresh produce (Pty) Ltd., [1993] B. L. R. 221
4.2
The problem of exclusion and limitation clauses
 Central South African Railways v Mclaren, 1903 TS 727
 George v Fairmead (Pty) Ltd, 1958 (2) SA 483
 Botswana Vaccine Institute (Pty) Ltd v DHL International Botswana
Ltd, 2009 (1) BLR 437 (HC)
 Bostrich Products International (Pty) Ltd v Monkge, 2010 (1) BLR 7 (HC)
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4.3
Treatment of vague or uncertain terms


Levenstein v Levenstein 1955 (1) SA 615
Time Projects Botswana (Pty) Ltd v Hi-Tech Investments (Pty) Ltd, 2001
(1) BLR 329
5
Breach of Contract
5.1
Mora Debitoris
Goldstein and Wolf v Maison Blanc (Pty) Ltd, 1948 (4) SA 446
Nel v Cloete, 1972 (2) SA 150 (A)
ABE’s Canteen (Pty) Ltd v Chouhan and Others [1993] BLR 382
Standard Chartered Bank of Botswana v Setlhake, [2001] BLR/ 286
Nortje v Fakie 2013 (1) SA 577 (KZP)
5.2
Mora creditoris
Medi Clinic (Pty) Ltd v Tlokweng Land Board and Another [2018] 1 BLR 80 (CA)
Ranch International Pipelines (Transvaal) (Pty) v LMG Construction 1984 (3) SA
861
5.3
Repudiation; Positive, Constructive and Anticipatory
Molebatsi v Molebatsi, 1989 BLR 1 (HC)
Kubu Investments (Pty) Ltd v Capital Growth (Pty) Ltd, 2001 (1) BLR 231 (CA)
Botswana Housing corporation v Lempadi, 1998 BLR 131
Tuckers Land and Development Corporation (Pty) Ltd v Hovis 1980 (1) SA 645
Phakalane Estates (Pty) Ltd v Design Investment (Pty) Ltd [2020] 1 BLR 434
(CA)
Alpha Direct Insurance Company (Pty) Ltd v Non-Bank Financial Institutions
Regulatory Authority and Others [2020] 2 BLR 200 (CA)
5.4
Positive malperformance
Sweet v Ragerguhara, 1978 (1) SA 131
Motor Sales and Service (Pty) Ltd v Bapedi Transport (Pty) Ltd 2009 (1) BLR 81
(CA)
Proneberg Holdings (Pty) Ltd v Scania Finance Southern Africa (Pty) Ltd [2014] 2
BLR 160 (HC)
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5.5
Prevention of Performance
Benjamin v Meyers, 1946 CPD 655
Tingwane v Botswana Unified Revenue Services, 2009 (2) BLR 1 (IC)
5.6
Impossibility of Performance




Peters, Flaman & Co v Kokstad Municipality, 1919 AD 427
First National Bank of Botswana Ltd v Makeko Farm (Pty) Ltd and Others [2020]
2 BLR 244 (CA)
Botswana Meat Commission v Botswana Meat Industry Workers' Union [2006] 2
BLR 550 (CA)
Botswana Mine Workers Union v Barloworld Equipment Botswana (Pty) Ltd 2020
All Bots 180 (IC)
6
Remedies for Breach of Contract
6.1
Specific Performance
Haynes v king Williams town Municipality, 1951 (2) SA 371
Benson V. SA Mutual Life Assurance Society, 1986 (1) SA 776
Gabaake v Gaborone Town Council, 1972 (1) B. L. R. 35
Potgieter v Van Dyk and Another 2004 (2) BLR 213 (HC)
Sandown Travel (Pty) Ltd v Cricket South Africa 2013 (2) SA 502 (GSJ)
 (Exceptio non adempleti countractus)
6.2
Interdict
Roberts Construction v Verhoef, 1952 (2) SA 300
Quarries of Botswana (Pty) Ltd v Gamalete Development Trust and Others
2010 (2) BLR 595 (HC), and 2011 (2) BLR 479 (CA)
6.3
Cancellation (Rescission)
 Cancellation for mora
Microutsicos v Swart 1949 (3) SA 715
Morewane v Charotee Borehole Syndicate and Others 2005 (2) BLR 388 (HC)
Kasale v Rapoo and Others, 2009 (1) BLR 268 (HC)
Jia v Motila [2010] 3 BLR 671, (HC)
Scania Finance Southern Africa (Pty) Ltd v P C J Motors (Pty) Ltd and Others
[2017] 1 BLR 225 (HC)
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 Cancellation for defective performance
Aviotech (Pty) Ltd v Lesedi Motors (Pty) Ltd, [2004] 2 BLR 190
Greenways (Pty) Ltd v. Engen Marketing Botswana (Pty) Ltd [2005] 2 BLR
270 (CA)
Austin Jack Transport Pty Ltd v Worldwide Commodities Pty Ltd 2010 (1)
BLR 679 (HC)
 Cancellation clauses (lex commissoria)
Custom Credit Corporation v Shembe, 1972 (3) SA 462
Van der Colf v Sebusi and Another 1989 BLR 289
6.4
Damages
 Meaning, rationale and computation









Hadley v Baxendale (1854) 156 ER 145
Victoria Falls and Transvaal power Co. Ltd v Consolidated Langlaagte
Mines Ltd, 1915 AD 1
Lavery & Co. Ltd. v Jungheinrich, 1931 AD 156
Holmedene Brickworks (Pty) Ltd v Roberts Construction Co. Ltd 1977
(3) SA 670
Mosikare v B.M. Construction (Pty.) Ltd [1992 BLR 100 (HC)
Nnyepi v Sijo Construction (Pty) Ltd 2007 (2) BLR 192 (HC)
Debswana Diamond Company (Pty) Ltd v Phepa Clean Varsity (Pty)
Ltd [2019] 2 BLR 77 (CA)
Zurich Insurance Company Botswana v Tuwana Construction
Company (Pty) Ltd [2020] 2 BLR 110 (CA)
Sandown Travel (Pty) Ltd v Cricket South Africa 2013 (2) SA 502
(GSJ)
 Mitigation of loss

Essack v Bamagwato Concessions Ltd 1983 BLR 307 (HC)
 Liquidated damages and penalty clauses
 Phakalane Property Developers (Pty) Ltd v Lighthouse Enterprises
(Pty) Ltd 2008 (1) BLR 1 (HC)
 Phakalane Estates (Pty) Ltd v Oscar Chombah and Others 2010 (1)
BLR 603 (HC)
7
Termination and Discharge of Contracts
Nkarabang v Materere; In Re: Nkarabang v Materere [2016] 3 BLR 500 (HC)
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7.1
By performance (Fulfilment)
7.2
By agreement (waiver, novation and compromise)





Spot Security Services (Pty) Ltd v Francistown City Council 1998 BLR 480
(HC)
Mbaakanyi v Botswana Meat Commission, 1999 (1) BLR 287 (HC)
Meswele Investments (Pty) Ltd t/a Oasis Motel v Attorney General 1985 BLR 370
(HC)
Chinappen and Others v Kindaswany and Others 2005 BLR 58 (HC)
Liwena v Afro Ventures Botswana t/a And Beyond [2014] 1 BLR 303 (IC)
7.3
By operation of law: prescription; Set off; merger; death; and insolvency
8.
Substitution of Parties and contractual obligations
 Privity of contract
 TL Investments (Pty) Ltd v Molefe 1985 BLR 222
 National development Bank v TGB Drill Contractors (Botswana) Pty
Ltd 1987 BLR 515 (HC)
 Cession, delegation and assignment


Drambore Ltd v Cyril Hurvitz Export Co. (BP) and Another 1993
BLR 245 (CA)
Mahomed v Georgoulas, 2000 (2) BLR 245 (HC)
 Plurality of parties
Costain Construction (Botswana)(Pty) Ltd v Essack, 1983 BLR 120 (HC)
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